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BI & Analytics » By Use Case » Transfer Pricing

Benchmark Data For Transfer Pricing

Using our Transfer Pricing Dashboard, you can easily benchmark your profit level indicators and other financial ratios against your chosen peer group's, identify gaps, anticipate possible queries from the tax authorities and be prepared with explanations. You have ready-made documentation as well as more resources for macro-economic and industry analysis, if required by your TP laws.

With the increase in cross-border trade and capital flows in recent decades, Transfer Pricing (TP) has been receiving commensurate attention from taxation authorities across the globe. So much so it has emerged as a new specialization or vertical within direct tax regime at all the three stakeholders' ends- taxpayers, tax practitioners and tax authorities.

Arm's length pricing (ALP) is the bedrock upon which the whole edifice of transfer pricing laws is built. Comparable Uncontrolled Price (CUP), Transactional Net Margin (TNM), Resale Price, Cost-Plus and Profit Split are the most common methods prescribed by jurisdictions across the world to establish that transactions with related parties are undertaken at arm's length price and that there is no profit shifting.

All methods above require, in varying ways, transactions between related entities to be compared with similar transactions between unrelated parties in order to ascertain the former are at arm's length price. Depending upon the specifics of a situation and applicable TP laws, either the tested entity's internal data pertaining to its comparable dealings with unrelated parties or data pertaining to comparable third parties or both sets of data can be used as benchmark to demonstrate arm's length pricing of related party transactions.

Our transfer pricing dashboard gives you the right intelligence about comparable uncontrolled price based upon most reliable data of companies in similar business and in same industry.

You can use our TP dashboard as a top-down approach which when combined with your more detailed or bottom-up workings helps you identify potential areas where further honing may be required and once you have been able to have both these approaches converge or have identified adequate justifications why they should not, you have a much more convincing case.

Start your TP journey with a bird's-eye view of the terrain our dashboard provides, use it as reference during your workings and ensure in the end either the results of your work are in line with the peer group's or you can justify the divergence with functional or other differences.

Use our dashboard and see how far it goes in giving you that extra layer of comfort as to the robustness of your transfer pricing dossier. After all, it's an independent validation against an objective and transparent benchmark. The analysis is available to you on a platter, so it's as easy to document as it's to work with- just select the country, industry and years in the below dashboard and see the most pertinent financial ratios pertaining to the comparable entities.

If your transfer pricing laws require you to do macro-economic or industry analysis, browse our wide range of reports and dashboards and save yourself weeks of work.

If you like the below but need more fine-grained filtering (e.g. by company name, business profile, turnover etc.) with latest data or need any other customization, subscribe to the premium version.

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With the premium version you can filter the report by individual company names and/or their business profile.