Optimization of Transfer Pricing for a Multinational Company in the Automotive Industry
Optimization of Transfer Pricing for a Multinational Company in the Automotive Industry
Description
Our firm was engaged by a multinational company in the automotive industry to help optimize their transfer pricing. The company had an extensive network of related entities in various countries and faced challenges in aligning their transfer pricing with international standards and regulations.
Solution
Our team of transfer pricing experts conducted a comprehensive analysis of the existing transfer pricing, identified potential shortcomings, and proposed optimized transfer pricing strategies. Utilizing the TP Catalyst database allowed us to perform benchmarking analyses against industry standards and competition. Our recommendations included restructuring transfer pricing, improving transfer pricing documentation, and applying appropriate cost allocation methods.
Results
Implementing our recommendations led to improved regulatory compliance, reduced transfer pricing risks, and optimized tax efficiency for the company. Additionally, there were noticeable improvements in operational efficiency and transparency of transfer pricing within the multinational network.
