As the pharmaceutical companies grapple with ways to grow revenues, reduce costs and compete with the generics, one area worthy of heavy focus is the overall effective tax rate.
We adopt a holistic view, combining industry insight with the technical skills of financial and tax professionals, economists, lawyers and our other in-house resources as needed, to develop comprehensive, integrated tax solutions for our clients.
The first obstacle to reducing the effective tax rate is the ever-increasing rate of regulatory and compliance requirements imposed by governments worldwide. Increasingly, taxing authorities are focusing on companies with extensive worldwide operations trying to challenge their business models, and often to tax additional income originally allocated and taxed in another (usually lower-rate) jurisdiction.
As multinational businesses are increasingly affected by tax, legislative and regulatory developments throughout the world, understanding the impact of these developments on business operations, and on the effective tax rate, is vital for a company’s survival.
Besides, still with a view of improving the efficiency and/or the profitability of the business, companies active in the pharmaceutical and life science sector are also concerned about reducing (direct and indirect) cash taxes and benefiting from available tax incentives.
We can offer tax advice in every facet of the pharmaceutical business.
Our technical knowledge and industry-based expertise is significantly sustained by our international network allowing us to facilitate the implementation of tax structures in connection with local specificities. Furthermore, PricewaterhouseCoopers also provides you with its international network of transfer pricing specialists benefiting from a thorough knowledge of economics, accountancy and law, as well as from an important know-how in project management.
PwC has sound experience in the implementation of Belgian R&D tax incentives including the patent income deduction, R&D investment deduction or tax credit, partial exemption of professional withholding tax for researchers, etc. Thanks to the thorough and up-to-date knowledge on the pharmaceutical and life science sector acquired by our experienced Belgian team, PwC ensures that the proposed R&D tax incentives perfectly match the clients’ needs.
Moreover, the constant relations of our team with Belgian authorities and organisations dedicated to the pharmaceutical industry enable us to foresee changes in Belgian legislation and react promptly with the most adequate solutions in order to face the ever-changing regulatory requirements of the sector.