Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Transfer pricing issues in the changing global tax climate

14 September 2021 / David Whitmer , Srinidhi Tuppal
Issue: 4808 / Categories: Comment & Analysis
57387
Global challenges

Key points

  • 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.

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.

It is important that MNEs are prepared to adjust their transfer pricing policies to maintain their profit margin while complying with regulations. Even though each situation is expected...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon