3. Addressing Challenging Transfer Pricing Items which Arose from BEPS - Enrique Rayon
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A note on Comparability<br />
• Selection of the most appropriate transfer pricing method to the circumstances of the<br />
case<br />
– Traditional transaction methods<br />
– Transactional profit methods<br />
• Transactional Net Margin Method (TNMM)<br />
– Based on net profit indicators, more tolerant to some functional differences than<br />
gross profit margins<br />
– Product comparability takes (took) less importance than functional comparability<br />
• Comparability of Pan-European benchmarks post-Brexit<br />
• Comparability of non-product-specific benchmarks post-U.S. tariffs<br />
– U.S. distributors<br />
– European and China manufacturers<br />
– China distributors vis-à-vis Pan-Asian distributors<br />
• Impact to the MNEs’ supply chains<br />
<strong>Transfer</strong> <strong>Pricing</strong> | 2017
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