Transfer Pricing Outlook for 2024

May 3, 2024

Global Minimum Tax Effects

A 15% global minimum tax has been introduced for conglomerates with revenues over € 750 million. This measure, led by the OECD and the G20, aims to standardize the tax burden of multinational companies and eliminate unfair competitive advantages. The correct implementation of these regulations will require thorough tax planning and adaptations in Transfer Pricing strategies to comply with the requirements in several jurisdictions.  

Strategic Changes in North America

Tax and economic dynamics in North America are marked by the increased “nearshoring,” whereby companies relocate operations from Asia to Mexico to take advantage of tax incentives and reduce logistics costs. This trend is restructuring international taxation and demands a renewed focus on Transfer Pricing policies to manage the new tax scenarios efficiently.  

Tax Reforms in Latin America

Brazil is simplifying its indirect tax system, while Chile and Colombia intend to align tax policies with international standards such as those of the OECD. These changes are significant for companies operating in these economies or economic groups in these countries, as they directly affect their tax obligations and strategies.  

Future Opportunities and Challenges

Companies must be aware of and prepare for legislative changes that may affect their international transactions. TPC Group offers specialized Transfer Pricing and tax planning advice to assist companies in dealing with this complex tax environment.  

In order to discover how these changes may affect your company and explore effective compliance strategies, please see our TPC Group website and contact us for a customized consultation. 


Source: El Cronista