KPMG report: Transfer pricing adjustments, potential customs tariff opportunities (COVID-19)

KPMG report: Transfer pricing adjustments

The seismic economic shock caused by the coronavirus (COVID-19) pandemic and in particular both demand and supply disruptions, is causing multinational corporations to reassess existing transfer pricing policies and consider making retrospective inter-company transfer pricing adjustments or additional payments.

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Different customs risks and opportunities exist depending on the direction of the transfer pricing adjustments or classification of any additional payments.

In the current high-tariff environment—i.e., with tariffs as high as 25% on many imported goods—the customs duty cost implications can be significant.

Read a May 2020 report [PDF 113 KB] prepared by KPMG LLP that highlights pertinent compliance and planning issues involved with these opportunities, which often require advance customs, accounting, and transfer pricing coordination and planning: What’s News in Tax: Transfer Pricing Changes May Result in Potential Customs Tariff Opportunities in a COVID-19 Environment

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