EY’s 2024 international tax and transfer pricing survey of 1,000 executives at large companies across 47 jurisdictions reveals that 84% of respondents expect a ‘moderate or significant’ risk of double taxation as a result of global tax reform, with 72% saying that global minimum taxes will have some impact on their transfer pricing policies.
Tracee Fultz, EY Global Transfer Pricing Leader, said: ‘The complexities around implementing global tax reform continue to take their toll on tax departments. With the heightened risk of double taxation, getting certainty is at a premium. This requires a fundamental pivot from tax planning to building as much certainty as possible into transfer pricing positions, which means being as proactive as possible in dealing with anticipated and current controversies.’
Marna Ricker, EY Global Vice Chair (Tax), commented: ‘Companies now face many new and extremely complex tax reporting requirements globally and more on the horizon. Many of these requirements include taxation at source as a transaction occurs.
‘New and emerging technologies including GenAI, robotic automation and quantum computing will be key in helping tax professionals meet these demands. Yet, currently, many are in the very early stages of learning how to use and deploy such technologies. It’s important that organisations prioritise tax in their data and technology transformation roadmap to help ensure their teams are equipped to deal with these challenges’, she added.
The survey also shows companies increasingly using advance pricing agreements to secure greater certainty for their transfer pricing positions.
EY’s 2024 international tax and transfer pricing survey of 1,000 executives at large companies across 47 jurisdictions reveals that 84% of respondents expect a ‘moderate or significant’ risk of double taxation as a result of global tax reform, with 72% saying that global minimum taxes will have some impact on their transfer pricing policies.
Tracee Fultz, EY Global Transfer Pricing Leader, said: ‘The complexities around implementing global tax reform continue to take their toll on tax departments. With the heightened risk of double taxation, getting certainty is at a premium. This requires a fundamental pivot from tax planning to building as much certainty as possible into transfer pricing positions, which means being as proactive as possible in dealing with anticipated and current controversies.’
Marna Ricker, EY Global Vice Chair (Tax), commented: ‘Companies now face many new and extremely complex tax reporting requirements globally and more on the horizon. Many of these requirements include taxation at source as a transaction occurs.
‘New and emerging technologies including GenAI, robotic automation and quantum computing will be key in helping tax professionals meet these demands. Yet, currently, many are in the very early stages of learning how to use and deploy such technologies. It’s important that organisations prioritise tax in their data and technology transformation roadmap to help ensure their teams are equipped to deal with these challenges’, she added.
The survey also shows companies increasingly using advance pricing agreements to secure greater certainty for their transfer pricing positions.
