Operational Transfer Pricing | KPMG | BE

Operational Transfer Pricing

Operational Transfer Pricing

Multinational companies that engage in cross-border transactions spend significant time and effort designing transfer pricing

Multinational companies that engage in cross-border transactions spend significant...

Multinational companies that engage in cross-border transactions spend significant time and effort designing transfer pricing policies to meet applicable tax regulations. However, the effective implementation of transfer pricing policies can be a complex, resource-intensive and risky process. Failure to do so can lead to significant and material business risks, such as financial reporting issues, increased tax liabilities, misstated financial statements and higher costs in terms of intercompany accounting and tax compliance.

 

How KPMG can help

Transfer pricing implementation requires significant integration and collaboration across many independent functional areas of an organization, including tax, finance and accounting, operations, and information technology. Each company has a unique set of “operational” transfer pricing challenges. Typical challenges include data management, information technology enablement, cross-functional process integration, communication and accountability.

KPMG’s Operational Transfer Pricing (OTP) services help companies to integrate their transfer pricing policies with day-to-day operations, improve the integrity of their intercompany accounting, increase operating efficiencies, and reduce risk. We can assess your current-state environment against leading practices, design processes and controls, and implement enabling technologies.

Potential benefits arising from our OTP services include:

  • Increased transparency into transfer pricing results
  • Enhanced monitoring and adjustment capabilities
  • Improved financial reporting accuracy and accounting close process timing
  • Greater realization of tax planning goals
  • Enhanced efficiencies and lower compliance costs
  • Reduced financial statement and tax risk

KPMG has a full suite of technologies to support any operational transfer pricing scope:

 

Why KPMG?

Bringing together our deep experience in tax and business advisory services, KPMG has developed an OTP Methodology that improves reporting and processes while creating a supporting technology infrastructure that enhances efficiency and reduces risk. 

KPMG’s framework, the Intercompany Process Continuum (“IPC”), allows companies to more effectively plan and fully align financial results with their global supply chain structure objectives. 

IPS is:

  • An automated solution operating within your enterprise IT environment that ensures data quality, and data reliability because it starts with enterprise level master and transactional data
  • Compatible with any and multiple enterprise IT platforms as well as other IT systems thereby leveraging your existing IT investment
  • Built to provide prospective intercompany pricing adjustments to achieve intercompany pricing compliance
  • Built to continuously monitor intercompany pricing positions and generate dashboard management reports

We have a national core team of OTP professionals, an international network of OTP professionals, and a full complement of fully-integrated advisory professionals.

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