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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...
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