Transfer Pricing

Phenomenal growth in world trade in recent years have increased volume of transactions between associated parties. This has made the issue of Transfer pricing as the foremost important to the businesses.

Transfer pricing continues to be in the spotlight and is an important matter for all multinational groups. In July 2013, the Organization for Economic Co-operation and Development (OECD) initiated the Base Erosion and Profit Shifting (BEPS) Action Plan.

Domestic tax laws are also in process of adaptation to meet the reporting requirement under BEPS Action plan.

What we do?

In response to this new international environment, KPMG’s transfer pricing practice helps groups develop and implement economically supportable transfer prices, document policies and outcomes and respond to tax authority challenges. KPMG offers its clients a range of services covering the entire cycle of the decision-making process:

Identifying potential BEPS risks and opportunities resulting from changes to the international tax environment.

Defining and implementing appropriate measures to address the potential risks arising from regulatory changes, from a global and local perspective.

Complying with the new tax and transfer pricing obligations within the new international tax environment.

We support with:

We have a specialist transfer pricing team which form part of KPMG’s network of global transfer pricing professionals around the world. This helps us look beyond borders and understand the nuances of different national tax regulations. KPMG can help groups manage their transfer pricing issues by:

  • Designing and developing economically supportable transfer pricing policies.
  • Helping to manage risk within the current tax environment of detailed transfer pricing regulations, strict documentation requirements, sophisticated audit practices, and significant penalties for non-compliance with an objective perspective which provide consistency when analyzing and documenting intra-group transactions.
  • Developing and implementing policies, procedures, and systems for setting, monitoring, and documenting intra-group transactions, including assistance with country by country reporting.
  • Assistance with transfer pricing disputes, including assistance with advance pricing agreements, competent authority negotiations, arbitration, and litigation support.