KPMG report: Transfer pricing and ESG—improving governance by operationalizing transfer pricing
A report that focuses on ways multinational corporations can use operational transfer pricing as a mechanism to improve compliance
Internal and external stakeholders of multinational corporations (MNCs) continue to focus on environmental, social, and governance (ESG) policies, with an increasing demand to understand the MNC’s approach to tax and transfer pricing. Thus, MNCs are advised to:
- Draft and publicly publish a groupwide tax policy that sets forth their approach toward key aspects of taxation, including their approach to transfer pricing
- Adopt appropriate tax governance, risk management, and controls to operationalize and implement the commitments made in the strategy
Read a March 2024 report* prepared by KPMG LLP that focuses on ways MNCs can use operational transfer pricing as a mechanism to improve compliance with their transfer pricing approach and their tax policy.
This the second report in a three-part series on the intersection between tax and ESG policies. The first report in the series focused on the role of transfer pricing in establishing responsible tax practices and providing suggestions of what MNCs may need to be doing going forward in terms of tax transparency and transfer pricing.
*This article appears in Tax Notes International (25 March 2024) and is provided with permission