The principal company structure.
Benefit from location advantages.
Disdained politically, however a common practice, the principal company structure model aims toward the relocation of the parent company to a low-tax country in order to tax production and logistics chains from there and centralize top management functions. Thus, multinational companies take advantage of tax benefits in the relocated headquarters while at the same time profiting from the cost advantages of low-wage locations in terms of physical value creation and logistics.
The introduction and use of a principal company structure is subject to strict rules and regulations. In order to cash in possible tax advantages of the principal company structure model, it is absolutely necessary to map the related value streams in SAP according to the given rules. GAMBIT works with all leading tax advising and business auditing companies who will develop the PCS model and the business and taxation transformation road map and keep an eye on company requirements as well as legal and tax regulations in the various participating countries.
GAMBIT ensures that the IT and SAP systems reflect these regulations and helps open the door for reaping the intended benefits.
End-to-end solutions. Compliant and audit-proof!
Core elements for the controlling of value chains are:
- Establishment and implementation of an agreed-upon transfer price model
- Splitting of areas of responsibility and assignment of the value-leading organizational units to the parent company
- Compliant assignments of execution responsibilities
- VAT registrations
- Compliant establishment of multi-level cross company or international chain transactions
GAMBIT has formulated best practice procedural models for various scenarios.
GAMBIT’s free analysis service
Manageability despite complexity!
The multi-level nature of chain transactions to be introduced between group companies generally results in increased processing complexity and document creation. GAMBIT’s experts have developed special methods and implementation models for this, which will ensure the greatest possible degree of automation and possible simplification.
In a pre-configured SAP demo system, common processes are available to be presented on the spot, and can be fine tuned easily.
GAMBIT not only offers broad expertise for target processes. We certainly also know how to transform your current business situation into the relevant, audit-proof target structure by using SAP-certified scenarios of the SAP component “SAP Landscape Transformation 2.0”.