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:
KPMG has a full suite of technologies to support any operational transfer pricing scope:
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.
We have a national core team of OTP professionals, an international network of OTP professionals, and a full complement of fully-integrated advisory professionals.