Are You Prepared For The Impact of COVID-19 On Your Transfer Pricing Arrangements?
The unprecedented COVID-19 crisis has caused otherwise healthy organisations to experience declines in revenue with little or no reduction in costs.
As the economic impact and continuing uncertainty of COVID-19 escalates, it is likely that the majority of multinational enterprises may find that established transfer pricing policies no longer give rise to arm’s length outcomes due to extreme disruptions to global workforce, supply chains, and customer demand.
Join BDO’s international Transfer Pricing Partners Zara Ritchie from BDO in Australia, Mark Schuette from BDO in the USA, Paul Daly from BDO in the UK, and Dirk Elbert from BDO in Germany who will share practical insights on key transfer pricing considerations during the COVID-19 crisis.
Some of the topics covered during the discussion will include:
- Different countries' legislation and integrity measures - potential impact on transfer pricing policies and business models
- Business needs within the transfer pricing cycle, eg liquidity - how to repond during different phases of COVID-19 and manage both short and long term impacts
- Supply chain disruption, allocation of extraordinary expenses/losses, impact on APA's and other specific arrangements - special considerations under various business models and scenarios
- Intercompany legal agreements and contracts - can MNEs operate outside existing terms?