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March 11, 2024 EY Global Tax Controversy Flash Newsletter (Issue 67) | Transfer pricing and customs valuation – a hot topic in Asia-Pacific The potential for divergence between transfer pricing and customs valuation can happen anywhere in the world, but because the World Trade Organization (WTO) customs valuation rules are not implemented harmoniously across Asia-Pacific (APAC), it is encountered frequently in the region. This can lead to uncertainty and disputes; and the financial impact of any changes in the customs-value for imported goods can be significant — for businesses and customs authorities alike. Customs may challenge companies’ import prices as being too low — requiring additional duties. But applying higher import prices may, in turn, result in scrutiny from the tax authorities if the higher values result in a lower corporate income tax base. Retrospective transfer pricing adjustments may also create difficulties. By definition, these adjustments In this complex environment, multinational entities need to understand the interplay of customs valuation To learn more, read EY TradeWatch Issue 3, 2023 Asia-Pacific: Interplay between transfer pricing and customs valuation. Additional information and links to past newsletters can be found in the attached PDF. Attachment Flash Newsletter attachment (Issue 67) | |||