Global supply chains across all industry sectors are facing an unprecedented challenge due to the COVID-19 pandemic. Increased pressure on supply chain linkages is nothing new to multinational enterprises (MNEs), due to national tax and trade protectionism measures, evolving international tax policies, and technological disruption, but the current global pandemic is materially different. COVID-19 is unlike typical supply chain disruptions in that it has rapidly moved across the globe and forced companies to respond almost immediately to address the near-term sustainability of their existing supply chains. This development is putting a massive strain on MNEs’ operations and creates a profound level of future risk and exposure from a business, tax, and legal perspective.

This article, part of Baker McKenzie and Bloomberg Tax's Special Report, addresses transfer pricing and the state of play for supply chains before and in response to the pandemic, and identifies implications post-pandemic.

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