As a business owner, staying ahead of the ever-changing tax landscape is crucial for a successful 2025 tax year. The IRS is stepping up enforcement, particularly in transfer pricing for multinational enterprises (MNEs). They’re closely watching U.S.-based multinational companies and foreign-owned distributors for profit discrepancies and intercompany pricing issues, with significant penalties for missing documentation.
You also need to be aware of the global minimum tax under the OECD’s Pillar Two, which introduces a 15% minimum effective tax rate. This will have an impact on your corporate tax planning, especially if you engage in cross-border transactions. Adjusting your strategies to meet these new standards and staying informed about global tax reforms will be essential.
Additionally, the IRS General Legal Advice Memorandum (GLAM) from December 2023 highlights the importance of understanding financial transactions within group memberships. Seeking external technical advice will help ensure compliance in this complex area.
Lastly, integrating sustainability into your transfer pricing practices is becoming more relevant. By adopting eco-friendly practices and maintaining transparent reporting, you’ll not only align with regulatory expectations but also benefit in the long run.
If you have questions on how this impacts you, be sure to discuss with your tax preparer and adjust as necessary.2025 tax planning: The four boxes you need to check | Accounting Today
