Deloitte recently commissioned an extensive, global, independent research study to better understand emerging Transfer Pricing trends. Top tax decision makers from multinational companies who operate in five or more countries and have revenues in excess of $1 billion USD participated.
- The pace of change in the Transfer Pricing world appears to be accelerating as a result of commercial globalization and the OECD’s Base Erosion and Profit Sharing (BEPS) initiative.
- New regulations and fear of inconsistent application of existing laws are driving risk concerns.
- Growing resource challenges stem from both the increased volume of work and the relatively limited number of qualified Transfer Pricing professionals.
- There are low levels of satisfaction with the current approach to Transfer Pricing, a high degree of uncertainty, and no single, proven model for success.
- Nearly all survey respondents indicated that their organizations rely, to some degree, on outsourcing and anticipate an increasing need for more specialist Transfer Pricing resources, through both in-house recruitment and increased outsourcing.
- The trend towards global coordination and centralization is rapidly increasing.
Overall, there is a desire to better leverage technology and increase process automation.
- This global research bulletin provides a snapshot of the current state of Transfer Pricing as well as anticipated future trends.
The Deloitte report is here
The above summary was published by Deloitte.com