Value Chain Taxation

Value Chain Taxation

Businesses are finding that by reviewing their organization’s value chain, they can manage tax risk and achieve significant commercial benefits that drive customer and shareholder value.

In fact an explanation of a group’s value chain is now part of the documentation requirements under the OECD’s new Transfer Pricing Guidelines. A value chain analysis might uncover weaknesses in your transfer pricing approach that require attention.

Business process changes can also have significant tax consequences – particularly if profit-generating activities are being moved from one country to another.

Any commercial restructuring within a group is a good time to carry out a value chain tax review.
Reduced trade barriers and significant improvements in technology means that even small and medium, family-owned businesses can operate internationally.

Regardless of your size, to compete internationally you need the right structures in place to reach your target markets and to produce and deliver goods or services efficiently and cost-effectively.

A value chain tax review can help you determine whether your tax strategy is aligned with the critical activities and assets you rely on to generate profits.

Value Chain Review | Transfer Pricing and BEPS

Value chain analysis is also an important tool in a post-BEPS world. One of the main aims of the BEPS program is to tax the profits where the value is created in a group.

A value chain analysis can help you demonstrate how you operate globally and that your tax structure reflects the commercial realities of how your company operates.

BDO’s global footprint and tax expertise in 164 countries and territories means you have direct access to experienced tax and value chain specialists wherever you do business.

We offer a full range of tax services so whether the restructuring has implications for transfer pricing and other international taxes, we have the expertise you need.

Our team of specialists takes a hands-on approach and provides you with coordinated support as you embark on any business restructurings.

Before offering advice, we listen to you and we take care to consider and respect the commercial realities of your business.

We offer practical solutions and we help you implement them.

Alin Irimia

Alin Irimia

Head of Transfer Pricing & Value Chain Taxation
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