What EY can do for you
Today’s leaders understand that as authorities tighten their focus and tax laws change around the world to capture their “fair share of taxes,” traditional approaches may be less impactful for managing a global effective tax rate. With transfer pricing and the optimum allocation of business functions and risk increasingly gaining as critical tax forecasting metrics, now is the time to position transfer pricing as an increasingly important component in your tax and business considerations.
The purpose of transfer pricing services is to appropriately price and document intercompany transactions to comply with various countries‘ rules and legislations. As government policies shift, and tax authorities share data, it is imperative to fully understand how transfer pricing works and its relationship to managing tax risk. A global survey of transfer pricing leaders indicates:
- 76% are challenged by the volume and complexity of global tax reforms
- 65% feel they lack input into key business decisions
- 58% cite new legislation among their top three transfer pricing risks
- 57% say they are not involved enough in key business decision-making
Properly documenting intercompany transactions is the first line of defense when your transfer pricing practices are challenged.
Whether you choose to apply a globally centralized approach or a decentralized approach to your documentation needs, you should understand, anticipate and be flexible to the rigorous transfer pricing scrutiny in the countries where you operate so that you meet the local requirements, particularly where there is heightened risk. The EY risk-based transfer pricing approach allows you to align your company’s business strategies and tax considerations with your risk profile.
Addressing change
To effectively navigate business-driven changes in real time, organizations must remain nimble and gain footing by thoroughly understanding supply chains, functions and risks. The EY Transfer Pricing team has technology tools to enable you to monitor intercompany flows and manage intercompany pricing reporting and risks. When deployed, these tools can help organizations generate timely insights from a transfer pricing framework that are directly related to intercompany transactions.
Implementing intercompany transfer pricing effectiveness
Operationalizing transfer pricing policies is an ongoing challenge with varying levels of complexity for many multinationals. EY teams have developed a structured and scalable transfer pricing framework for improving transfer pricing implementation and building integrated systems and processes that function across tax, business units and operations.
Our flexible approach can help you develop sustainable practices to execute, monitor and report intercompany transactions.
EY Transfer Pricing Engine
Discover the EY Transfer Pricing Engine – an efficient and streamlined framework to help you approach, monitor and analyze your intercompany transactions with one core system. With advanced architecture and functionality, the EY Transfer Pricing Engine is cloud-hosted and available as Software as a Service, or our EY professionals can offer support by operating the tools to meet your business’s needs through our transfer pricing services.