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Multinationals Seek Clarity as Transfer Pricing Complexities Look Set to Increase

Multinationals Seek Clarity as Transfer Pricing Complexities Look Set to Increase
Taxand, the world's largest global organisation of tax advisors to multinational businesses, warns Americas based multinational companies of the increasing complexity of transfer pricing rules.

Taxand launches its second Americas Guide to Transfer Pricing, designed to provide multinationals with an at-a-glance view of the key transfer pricing legislation in place across the major North and South American jurisdictions to inform multinationals' decision making.

As the role of multinationals in world trade continues to increase, managing operations across multiple jurisdictions is complex. With the global economy continuing to put pressure on existing transfer pricing models, multinationals are looking for ways to improve their corporate structures to achieve efficiencies. Yet, transfer pricing is critical as it remains one of the only viable options for multinationals to minimise tax rates. Nowhere has transfer pricing regulation complexity increased further in recent years than in the Americas, as companies continue to investigate more cost effective operational footprints. With updates to the OECD's Transfer Pricing guidelines expected in 2014, keeping up with ever-changing transfer pricing legislation is challenging.

Taxand's Americas Guide to Transfer Pricing is designed to be an essential desktop 'ready reference' for corporate executives to understand the procedures in place in the jurisdictions in which they operate. The guide covers - by country - documentation requirements, applicable transfer pricing methodology, related party definitions, penalties for non-compliance and thin capitalisation rules.

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Taxand's Take

Manuel Candal, Taxand Board Member & editor of the Taxand Americas Guide to Transfer Pricing 2013, said:

"Transfer pricing regimes in the Americas are becoming increasingly complex. Multinationals are constantly re-educating themselves, and re-evaluating their tax structures to ensure compliance with ever-developing tax legislation worldwide. Competitive multinationals can't afford the surprise of unexpected adjustments. As the OECD look to update their transfer pricing guidelines the Americas can further align their businesses to these rules with a view to achieving a greater level of harmonisation between countries.

Not only will harmonisation bring multinationals greater certainty, but the opportunity for advance pricing agreements means that an increasing number of multinationals will be able to benefit from the opportunity to agree tax arrangements before a transaction takes place, reducing future complexities and uncertainty."

Taxand's Take Author

Manuel Candal