Transfer pricing issues in the changing global tax climate
September 22, 2021
- The rapidly changing political climate and global tax environment are expected to affect the transfer pricing strategy of multinational entities (MNEs) with related entities worldwide.
- The Covid-19 pandemic has caused operational impacts and led to practical challenges in applying the arm’s length principle.
- The impact of Brexit is another issue that MNEs have to consider.
- With further global corporate tax and transfer pricing changes due from the OECD’s pillar one and pillar two proposals, MNEs should adopt a robust transfer pricing policy and review them periodically to ensure compliance and manage risks.