Setting intercompany pricing policies is challenging but achievable for most organizations. It’s a much bigger task to align these policies with your transfer pricing processes and controls and implement. Transfer pricing perfection is impossible in today’s environment, and it’s getting even harder as business models grow more complex and demands for tax transparency intensify.
Operational Transfer Pricing (OTP) can help. OTP is the management of transfer pricing data, processes and governance using technology. An effective OTP program aligns transfer pricing requirements with commercial goals, thereby promoting compliance, reducing complexity, delivering strategic insights and driving better business decisions.
This article explores why OTP is now attracting renewed attention, it dispels common misconceptions about OTP and highlights its potential benefits.
Visit the KPMG website to read the entire article: