A quest for transparency: Transfer pricing for the new economy
TAX BLOG |
Transfer pricing is not new, but the way businesses need to approach it certainly is. With taxation of foreign operations making headlines worldwide, it is imperative that multinational companies understand the changing landscape.
From the Republican’s border tax proposals to the base erosion and profit shifting (BEPS) action plan from the OECD, there is no shortage of efforts to make sure that multinational companies are fairly reporting and paying taxes in the countries where they do business. Transfer pricing documentation, therefore, has become more focused on transparency as my colleagues discuss in this video:
The takeaways? Update your transfer pricing study now. Revisit it regularly. And pay attention to how other countries are implementing the recommendations of the BEPS action plan. If your company is subject to the country-by-country reporting requirements, consider a technology-driven approach.