Tax
Transfer Pricing Benchmarking Studies
A benchmarking study is the evidence that your intra-group pricing sits where independent parties would have put it. We run the comparable search, apply the screening and document the result so the range holds up.
Why it matters
Why Transfer Pricing Benchmarking Studies matters
Benchmarking is where transfer pricing stops being narrative and becomes numbers — and where the method behind the numbers gets examined.
The search has to be reproducible
Screening criteria and rejection reasons need recording. A range without a documented search is an assertion.
Comparability is a judgement
Which companies genuinely compare to yours is the analytical work, and it is where studies differ in quality.
Ranges age
Financial data moves. A study relied on for years stops supporting the pricing it was built for.
What we provide
What the engagement covers
Transaction characterisation
Establishing what is actually being priced before searching for anything to compare it to.
Comparable search
Database searches run against defined criteria, with the screening steps recorded.
Manual screening
Candidates reviewed individually and rejections reasoned, rather than filtered automatically.
Economic analysis
The arm's length range calculated and the result interpreted against your actual pricing.
Study report
A document setting out the method, the search, the screening and the conclusion.
Refresh
Periodic updates so the range continues to reflect current data.
Outcomes
What you get
A defensible range, with the search behind it documented
Comparables screened by hand rather than accepted from a filter
A clear read on whether your current pricing sits inside the range
A study that can be refreshed rather than redone
Who it is for
Built for businesses like yours
Groups supporting intra-group service or product pricing
Entities needing evidence for a local file
Businesses whose pricing has been questioned
Companies setting pricing for a new intra-group arrangement
Questions
Transfer Pricing Benchmarking Studies: common questions
The financial data underlying a range is updated periodically, and a study relied on indefinitely stops reflecting current comparables. We advise on refresh timing as part of the engagement.
Then it is much better to know now. We set out the position, the size of the gap and the options — which may be adjusting pricing, or may be evidence that the characterisation needs revisiting.
Talk to a senior about transfer pricing benchmarking studies
Free consultation, no obligation, and a reply in under 30 minutes during working hours.