Transfer pricing Insight series

The devastating global coronavirus pandemic is having an unprecedented effect on economies across the globe. Following our webinar on 5 May 2020, The Impact of COVID-19 on Your Transfer Pricing Arrangements, we are publishing our first series of Insights to focus on how the pandemic is affecting every aspect of global business which can have immediate and profound effects on transfer pricing, including rendering existing policies obsolete.

React

We start our series with Insights that will help you look at how transfer pricing comes into play while reacting to safeguard the business and survive in these uncertain times.

• How Transfer Pricing Can Improve Cash Flow
• Routine Entities and Principals - Adjusting Profits 
• Adapting royalties and service payments in the short and longer term economic environment
• Profit splits and cost sharing: what about losses?

Resilience

We look at what comes next for companies in order to build resilience and strive towards recovery and normalcy. We discuss the meaning of “arm’s length” in this context - how do you adapt transfer pricing policies to the new economic reality? When is it appropriate to share losses among affiliates? What unique documentation issues should companies consider?

We will gradually publish the articles in the coming days.

Realise

And finally, what transfer pricing considerations should be kept in mind as companies start to realise the benefits and begin to thrive? Are there opportunities for better IP management? Should supply chains be reviewed with a view toward near-shoring or critical-function redundancy? How can the anomalies of the Covid-19 period be reconciled with a company’s long-term transfer pricing strategies?

We will gradually publish the articles in the coming days.

We believe that this series of articles by our transfer pricing specialists will provide you with timely information on current issues. Please visit our online hub for available Insights.