Tax, Transfer Pricing and the Effective Management of Supply Chains

Multinational manufacturers can potentially achieve highly desirable tax savings from developing a Tax Efficient Supply Chain Management (TESCM) model. In general, TESCM enables a company to enhance efficiency, reduce operating costs and achieve a lower and more stable effective tax rate. It considers tax while designing a supply chain strategy to centralize or shift functions, such as research, administration, manufacturing and distribution.

In this article, we summarize the considerations - particularly transfer pricing - that arise when deciding to restructure a supply chain.

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