Optimization of Transfer Pricing for a Pharmaceutical Company
Optimization of Transfer Pricing for a Pharmaceutical Company
Description
Our team worked with a large pharmaceutical company that faced the complexity of managing transfer pricing in a global network of entities. The company wanted to improve its transfer pricing documentation, reduce the risk of tax disputes, and ensure consistency in the application of transfer pricing.
Solution
We conducted a thorough review of the company’s existing transfer pricing and documentation, identified shortcomings, and recommended optimization. Our team provided expertise in the application of cost allocation methods, analyzed the competition, and used the TP Catalyst database for benchmarking analyses. We developed consistent guidelines for applying transfer pricing across all company entities, with clear procedures and documentation.
Results
After implementing our recommendations, the pharmaceutical company achieved greater consistency in the application of transfer pricing, reduced the risk of tax disputes, and improved transparency in its operations. This resulted in reduced tax risks and greater efficiency in managing transfer pricing globally.
