Tax offerings for the consumer products industry
In our work with consumer products companies, our clients consistently describe a number of major trends that impact their businesses today from a tax perspective. Among the most notable are: Innovation and product development; Brand rationalization; And, Structuring global supply chains. These issues have both tax compliance and planning implications, including potential opportunities that should not be ignored. Addressing them all can be a balancing act; however, doing so may uncover value for your organization. Deloitte can help.
Tax Services for Innovation and Product Development
To stay competitive, today’s consumer product companies constantly focus on cost effectively developing new products. Tax can play an important role in developing your innovation strategy. Identifying potentially qualifying activities for research and development (R&D) tax credits often requires specialized industry knowledge along with a keen understanding of tax law nuances and how taxing authorities interpret and apply the laws. It can take dedicated professionals to perform calculations and assimilate documentation necessary to support an R&D credit claim. Few companies have the personnel and resources necessary to accomplish this and many overlook potentially large tax credits. As a leader in analyzing and calculating R&D tax credits, Deloitte can help you explore tax benefits potentially available for activities your company conducts, developing R&D incentives strategy at local, state, national, and international levels.
Tax implications for brand rationalization
In response to evolving consumer demands and stakeholder pressure to expand into new markets globally, many consumer products companies are actively working to strengthen their brands, either acquiring new companies to fill out a portfolio or divesting product lines for a more fit and focused core brand strategy. Significant tax issues emerge in this complex environment, particularly those related to merger and acquisition activities. Deloitte can help you address the challenges M&A initiatives bring throughout the M&A cycle, from pre-transaction planning and tax due diligence to post-merger integration and monitoring.
Global supply chain tax planning
As procurement activity continues to expand across international borders, consumer products companies are looking for efficient and effective ways to structure their international supply chains. Tax can play a critical role, particularly with respect to areas like transfer pricing and above-the-line taxes, such as sales taxes, VAT, GST, and customs and duties.
Aligning a multinational company’s operating model with its global tax planning can enhance the opportunity for value creation in the supply chain. Business Model Optimization (BMO) creates value through business transformation by integrating operational and global tax planning to capture efficiencies across the supply chain. Our BMO services are provided by a dedicated, cross-competency, and global team experienced at aligning tax planning and business strategy, intellectual property (IP) planning, and cash utilization planning. BMO services help integrate operations and tax planning in a way that may allow a business to make strategic decisions on an after-tax basis.