In many cases, in order to demonstrate compliance with the arm’s length principle, benchmarking studies may be required to be performed. Benchmarking studies are often also critical in setting Transfer Pricing policies to be applied going forward.
Performing a benchmarking study is a complex process which requires examination of various sources of information and databases. With our access to the relevant benchmarking data, we can assist you in determining the arm’s length range of prices or margins for intercompany transactions involving goods, services, intellectual property and financial assistance.
The benchmarking studies are customised to the specific intercompany transactions being analysed, taking into account relevant factors such as:
- Industry;
- Region;
- The functions performed, assets used and risks assumed by the parties to the respective transaction;
- Materiality of the transaction, etc.