Transfer pricing compliance and documentation

What EY can do for you

Appropriately pricing and documenting your intercompany transactions to comply with various countries‘ rules and legislation is imperative in managing tax risk.

Documenting intercompany transactions is the first line of defense when your transfer pricing practices are challenged.

Whether you choose to apply a globally centralized approach or a decentralized approach to your documentation needs, you need to understand the rigorous transfer pricing scrutiny in the countries where you operate so that you meet the local requirements, particularly where there is heightened risk. This risk-based approach allows you to align your company‘s business and tax strategies with your risk profile.

Transfer pricing documentation

EY has developed TP Web™, a comprehensive transfer pricing documentation tool that can help you streamline your internal processes and generate reporting packages to support transfer pricing documentation requirements under BEPS Action 13. Furthermore, TP Data Collect, our web-based data collection platform provides your local teams with a central repository to upload TP-relevant data for documentation.

Country-by-country (CbC) reporting

EY has also developed a separate CbC reporting tool “CbCR Web™” that helps you generate CbC reporting data, as required under BEPS Action 13.

Transfer pricing implementation - intercompany effectiveness

Operationalizing transfer pricing policies is a big challenge for many multinationals. EY has developed a structured and scalable framework for improving transfer pricing implementation and building integrated systems and processes across tax, business units and operations.

Our flexible approach can help you develop sustainable practices to execute, monitor and report intercompany transactions.

Managing your financial transactions transfer pricing

To help you simplify and automate relevant treasury and tax workflows, EY teams have developed the EY Intra-group Finance Web, an interactive platform for managing, pricing and documenting intra-group financing arrangements. Finance Web optimizes the following workflows:

1. replacing manual tasks related to entering and documenting terms and conditions of transactions;
2. determining credit rating estimates for group companies;
3. retrieving comparable market data (through real-time connection) from third party financial databases / platforms;
4. performing necessary adjustments; and
5. generating loan agreements and TP documentation reports.