• Value chain tax services

Value chain tax services

For international companies any changes in the way you carry out your business can change your tax profile in one or more of the countries in which you operate. With unprecedented pressures for change facing international businesses, most can expect their tax profile to change dramatically in the coming years: are you ready?

In the post-BEPS world, tax authorities want to understand more about the value creation story of a business and ensure the profits are being taxed where the value is created. In many countries, particularly those like the UK that follow the OECD guidelines, there is a requirement to explain your value creation story in your transfer pricing documentation.

A value chain tax review will provide the information that management, tax authorities, and other stakeholders need to understand how the value creation is aligned with the tax profile of a group. It is set to become an essential tool to support your reporting and can help pre-empt questions from tax authorities.

Aside from ensuring that value creation and taxation are aligned internationally, there are, of course, myriad other commercial reasons to restructure as your business and market evolves. For example, preparing for Brexit and new market opportunities could be driving changes that have wide tax implications. We can help you model how you plans will change the tax burden across your value chain so that you can establish cost-effective and compliant business structures for the future.

With a Global Network spanning 158 countries, we can help you identify, understand and manage the tax costs of changes in your value chain by:

  • Analysing potential exit charges on the movement of assets
  • Establishing transfer prices that are defensible and that give each activity an arm’s length return
  • Achieving the right level of substance to manage permanent establishment risks
  • Managing sales taxes and customs duties.

The most useful value chain analyses are those in which the commercial and tax teams work together from the start - so we see to it that both our team members and yours quickly build a thorough understanding of all the issues, challenges, and business situation. Together, we can then help you develop a value chain that achieves your commercial goals in an efficient, compliant and cost-efficient way.