Original Equipment Manufacturing (OEM) Client

The Situation

Working with a worldwide OEM client, NERA economists have had over a decade of experience in developing and implementing transfer pricing policies on a global scale.

NERA's Role

By taking advantage of its international resource base, NERA economists have assisted this client to obtain multilateral Advance Pricing Agreement and related transfer pricing documentation protection. In addition, NERA economists have designed and helped to implement appropriate arm's length pricing mechanisms for operations in North America, Europe, the Far East, South East Asia, and Australia.

The Result

NERA's consulting services to this client have included the development of sophisticated financial models designed not only to demonstrate compliance with national regulations for tax filing purposes, but also to plan appropriate transfer pricing in advance. This has enabled determination of intercompany prices throughout the budgeting process consistent with arm's length properties and taking into account the nature of the company’s manufacturing and distribution operations, and their specific assets, risks and intercompany contractual relations.