{"id":4900,"date":"2020-07-15T14:54:03","date_gmt":"2020-07-15T14:54:03","guid":{"rendered":"https:\/\/sarahf10.sg-host.com\/?p=4900"},"modified":"2021-02-23T15:23:13","modified_gmt":"2021-02-23T15:23:13","slug":"transfer-pricing-adjustments-when-the-economy-takes-a-turn","status":"publish","type":"post","link":"https:\/\/taxops.com\/transfer-pricing-adjustments-when-the-economy-takes-a-turn\/","title":{"rendered":"Transfer Pricing Adjustments when the Economy Takes a Turn"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img decoding=\"async\" width=\"744\" height=\"400\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing.png\" alt=\"\" class=\"wp-image-4901 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing.png 744w, https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing-480x258.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 744px, 100vw\" \/><noscript><img decoding=\"async\" width=\"744\" height=\"400\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing.png\" alt=\"\" class=\"wp-image-4901 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing.png 744w, https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing-480x258.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 744px, 100vw\" \/><\/noscript><\/figure><\/div>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/taxops.com\/team\/davinia-lyon\/\">Davinia Lyon<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The economic impact of the COVID-19 pandemic has created tax challenges for businesses operating internationally. The tax rules international players follow to determine tax duties are particularly challenging right now around royalty arrangements, adjusting comparable data, and attributing losses to subsidiaries, reports Daniel Bunn for the <a href=\"https:\/\/taxfoundation.org\/oecd-transfer-pricing-guidance-in-an-economic-downturn\/?utm_source=Tax+Foundation+Newsletters&amp;utm_campaign=57db441354-EMAIL_CAMPAIGN_2019_10_17_07_28_COPY_01&amp;utm_medium=email&amp;utm_term=0_8387957ec9-57db441354-427651801&amp;mc_cid=57db441354&amp;mc_eid=e5bb68bfa0\">Tax Foundation<\/a>. In his recent paper, Bunn identified a number of key findings that impact transfer pricing when economies are struggling, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Businesses will need to adjust their transfer pricing to reflect the changing economic circumstances with limited real-time data on comparable entities and transactions.<\/li><li>Royalty arrangements with production facilities, distributor returns, and loss attributions all create decision points for companies to adjust their transfer pricing.<\/li><li>Significant transfer pricing changes could lead to new disputes with governments unless there is flexibility.<\/li><\/ul>\n\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">The Takeaway&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Local jurisdictions are going to increasingly challenge transfer pricing methodologies to offset the impacts of the economic downturn to their revenue.&nbsp;As a cross-border company, a review of your current tax and transfer pricing structuring could uncover options to improve cash flow and potential tax savings as well as prepare to you to battle these challenges. As you adjust your transfer pricing policies to align with the economics of your business, the adjustments you make may impact where and how much in taxes are paid to governments globally.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Get in touch with your&nbsp;<a class=\"aioseop-link\" href=\"https:\/\/taxops.com\/salt\/\">TaxOps&nbsp;Adviser<\/a> to discuss transfer pricing adjustments that reflect current market economics. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Let&#8217;s Talk Tax<\/h3>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><a href=\"https:\/\/taxops.com\/team\/davinia-lyon\/\">Davinia Lyon<\/a> can be reached at dlyon@taxops.com\u00a0or 720.512.5438.\u00a0<\/p><\/blockquote>\n\n\n\n<div style=\"height:62px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/prospects\/connect-with-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">Get in Touch<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:62px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Latest Tax News<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:62px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<strong>Follow Us<\/strong><br>\n<a href=\"http:\/\/www.linkedin.com\/company\/201050\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fa fa-linkedin-square fa-2x\"><\/i><\/a>\n<a href=\"https:\/\/twitter.com\/taxops\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fa fa-twitter-square fa-2x\"><\/i><\/a> <a href=\"https:\/\/taxops.com\/prospects\/connect-with-us\/\" target=\"_blank\" rel=\"noopener noreferrer\"><i class=\"fa fa-envelope-square fa-2x\"><\/i><\/a>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Davinia Lyon The economic impact of the COVID-19 pandemic has created tax challenges for businesses operating internationally. The tax rules international players follow to determine tax duties are particularly challenging right now around royalty arrangements, adjusting comparable data, and attributing losses to subsidiaries, reports Daniel Bunn for the Tax Foundation. In his recent paper, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4901,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[228,229,226],"tags":[132,64,65,251,281,637],"class_list":["post-4900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-tax","category-state-and-local","category-tax-news","tag-accounting","tag-accounting-for-income-taxes","tag-asc-740","tag-auditor","tag-finance","tag-transfer-pricing"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2020\/07\/transfer-pricing.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/4900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=4900"}],"version-history":[{"count":1,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/4900\/revisions"}],"predecessor-version":[{"id":7042,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/4900\/revisions\/7042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/4901"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=4900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=4900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=4900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}