Addressing liquidity issues using intercompany pricing tools (COVID-19)

KPMG report: Addressing liquidity issues

The coronavirus (COVID-19) pandemic has given rise to economic instability and associated liquidity strains for businesses globally.


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Various transfer pricing strategies can be deployed to meet short-term and long-term operational, financial, and capital needs by conserving available cash, enhancing access to external sources of new liquidity, and tapping into cash reserves in multiple jurisdictions. These strategies include:

  • Adjustments to working capital terms
  • Modification of debt terms
  • Initiating new financing arrangements
  • Use of parent company guarantees
  • Utilization of cash pools
  • Asset-based lending options
  • Reconsideration of non-financial intercompany transactions

Read a July 2020 report [PDF 107 KB] prepared by KPMG LLP: What’s News in Tax: Addressing Liquidity Issues during Covid-19 Using Intercompany Pricing Tools

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