Stock illustration: Putting the final puzzle piece in a business relationship

The Covid-19 pandemic has dramatically disrupted business operations and financial markets, leaving many companies scrambling to adjust to ever-changing economic circumstances. Many companies are still managing business emergencies or reorganizing operations on the fly, but as organizations begin to stabilize and plan for 2021 (and beyond), transfer pricing is one area that companies should be thinking about.

For companies that have reorganized operations to adapt to the evolving economic and business environment, existing transfer pricing policies may no longer appropriately reflect their corporate structure and intercompany cash flows. For example, some companies have moved parts of their supply chains (e.g., onshoring manufacturing to reduce the need to ship goods), and such a change could make transfer pricing policies—like those related to manufacturing locations—outdated or obsolete. In such cases, it may make sense to revise transfer pricing policies to better match the new organizational structure.

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