Commodity Trading Companies – Meeting the Challenges of Tax and Regulatory Changes

Commodity trading companies: tax and regulatory changes

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For companies in the energy and natural resources (ENR) industry, regionally and globally centralized commodity trading companies offer tremendous competitive advantages. But sustaining these advantages is becoming increasingly difficult in the face of increasing regulation, changing market conditions and international tax reforms.

Commodity trading companies – Meeting the challenges of tax and regulatory change is a follow-up to the 2012 report, Commodity trading companies: Centralizing trade as a critical success factor, where ENR tax and management consulting professionals with KPMG International’s network of member firms explored the growing popularity of these models and outlined their benefits and risks, commercially and from a tax perspective.

Since 2012, the global landscape for the oil, gas, mining and agricultural industries and commodity traders has changed dramatically. Regulatory changes are taking hold, the direction of international tax reforms is becoming somewhat clearer, and the long-term impact of current pricing volatility, especially for crude oil is unknown - all of which make this an opportune time to take stock of the trends and developments that are transforming the commodity trading sector.

To this end, we sought the views of KPMG ENR professionals around the world to answer these questions:

  • How are commercial and regulatory pressures influencing commodity trading business models?
  • What aspects of the global movement to address base erosion and profit shifting are creating the biggest challenges for international commodity trading structures?
  • How can commodity trading companies meet these challenges and position themselves to thrive in the years to come?

In summary, we describe how global companies can continue to reap substantial benefits from their centralized commodity trading operations - but how their success depends on their ability to navigate and manage a dynamically changing global marketplace.

For more information, download the full report below.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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