Where business models or the business environment has changed, companies need to rethink their transfer pricing policy in order to save money.
By more effectively using transfer pricing, losses can be better utilised, the group’s effective tax rate may be lowered, or a decrease in quarterly corporation tax payments may be achieved, all resulting in immediate cash tax savings.
What's on your mind?
- Looking for immediate cash savings or ways to reduce costs within their operations
- Expanding operations or making economic profile changes in existing markets which impacts on individual entity profitability
- Seeking to restructure the supply chain for many reasons including generating operational efficiencies
- Need to effectively integrate business acquisitions into existing operations
- Reviewing group pricing policies
- Change in capital structure and financing of subsidiaries, resulting in changes to overall profits
Bringing you peace of mind
- We offer a global network of transfer pricing specialists who have a proven track record of using transfer pricing in the commercial environment to generate real cash tax savings for clients
- By providing tailored strategies to multi-national groups, we remain at the forefront of technical developments and thought leadership, having managed and delivered transfer pricing services on a global basis for some of the world’s largest and most complex multinational groups; we have delivered savings for one client of £80m over a three year period and £14m for another
- Clients choose KPMG because of our high quality and globally consistent work, ensuring they achieve results and minimise risk
What's in it for you?
- Bespoke transfer pricing policy that minimises the group’s overall effective tax rate
- Practical implementable advice that results in cost savings and efficiencies
- Transfer pricing certainty
- Simplified provisioning
- Stable financial reporting
- Reduced risk of revenue enquiries, saving management time
Why KPMG?
- Highly specialised team with thorough knowledge of working within the OECD, HMRC and in industry. Involvement in drafting the OECD guidelines, the basis for most developed countries transfer pricing rules
- We have helped multi-national clients save significant sums: £80m for one client
Case Study
- KPMG assisted a leading Japanese consumer electronics MNE in preparing a wide range of transfer pricing documentation across Europe, Asia-Pacific and the US
- The intra-group transactions covered include sales of components, finished goods, management and treasury services and intellectual property transfers
- The transfer pricing documentation prepared by KPMG has allowed the Group to minimise its risk exposure to tax authority audit and subsequent transfer pricing adjustments in the countries in which it operates
- KPMG in the UK has been the Group’s principal transfer pricing advisers in Europe, actively overseeing documentation projects, planning studies and tax audits across Europe and regularly communicating progress to the Group’s European Tax Manager based in the UK
