The Transfer Pricing challenge
Complex international tax planning structures or not, Transfer Pricing poses a major challenge for industries.
Potential direct tax risks from double taxation
Multinational enterprises (MNEs) with large customs exposure should consider and evaluate in parallel the interdependencies between TP and customs.
Both risks and opportunities can evolve depending on the approach taken by MNEs.
Nowadays, tax authorities across countries also challenge multinational corporations by auditing their operational implementation of the Transfer Pricing system.
Audits of the day-to-day processes and financials on a granular data level are just one example. Tackling transactional data, systems and processes is one option to easily detect weaknesses or errors within the MNE group’s Transfer Pricing system.
Key industry sectors benefiting from EXA OTP
Almost every mid-sized or large multinational group in these sectors with discrete or process manufacturing processes operates a number of production sites combined with non-centralized IP, supply-chain hubs, as well as local distribution entities. In situations such as these, TP managers have to face the huge complexity of managing Transfer Prices on a day-to-day basis in line with tax regulations, internal policies, and guidelines.
The SAP add-on solution EXA OTP enables OTP managers to take control of what is happening across the whole IC network.
Compliance requirements can be met efficiently by eliminating manual processes and historic spreadsheet calculations.