adjustments - Covid-19 crisis
Adjust your transfer pricing policy to reflect new market conditions
Why should I adjust my transfer pricing policy?
The economic and health crises we are currently experiencing create a radical break with previous market conditions.
Transfer pricing policies have to evolve to reflect these new market conditions, but also to follow the new operational realities of firms.
It is necessary to perform these adjustments as soon as possible to limit the impact on custom duties and to anticipate all operational transfer pricing aspects.
How can we help?
Transfer prices must reflect market conditions, at the time where transactions are concluded.
To apply the transactional net margin method (TNMM, also called CPM in the US), margins applied today must reflect margin levels that will be achieved by comparable companies in 2020. TP qube has developed a suite of financial and statistical tools to estimate these margin levels, and adjust your comparable company searches.
Adjusting your comparable companies’ searches is the most robust and costs-effective way to anticipate the impact of the crisis on your transfer pricing policy.