New KPMG research offers insight into growing transfer pricing regulations

KPMG’s latest global research report Global Transfer Pricing Review takes a detailed look at transfer pricing regulations in 60 countries. The research shows that in the past year there has been a marked increase in transfer pricing regulations as more and more governments act to protect their tax base.

Several countries have introduced, or are about to introduce, new transfer pricing regimes, while others are increasing their transfer pricing audit programs. The consequences for international businesses are that they may need to increase their knowledge of the current regulations and to take a stronger, proactive approach to managing transfer-pricing policies and implementation.

The key findings from the report include:
• Transfer pricing audit activity is increasing globally as many governments expand their experience in analyzing transactions and look for new sources of tax.
• Tax authorities have been most active in Asia-Pacific, but there has been increased focus on this area in Eastern Europe and Africa as well.
• Many governments in the Americas have taken divergent approaches. Canadian authorities appear to favor “taxation by negotiation” while the US and some Latin American jurisdictions appear to prefer advance pricing agreements.

To learn more about how countries across the globe are regulating transfer pricing, and the implications for businesses, download the full study here.