Transfer Pricing Benchmarking Analysis

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Insights on transfer pricing

Transfer pricing is a critical aspect of international corporate taxation, affecting multinational companies worldwide. To prevent tax penalties and limit disputes, it is crucial that intra-company transactions comply with the arm’s length principle. Benchmarking analyses play a key role in this process by offering reference values for setting or supporting transfer prices for tax purposes.

At KPMG Acor Tax, we tailor your benchmarking analyses through close collaboration, ensuring that the results can be used for the price setting and as a key element for complying with international standards and local transfer pricing documentation requirements.

By choosing us, you will benefit from:

One central contact for your global transfer pricing compliance
Pan-European, Pan-Asian, and Pan-American benchmark analyses from one source
Global KPMG network with local contacts for clarifying local requirements
An experienced team with many years of benchmark know-how
Standardised processes

Holger Haugstrup

Partner, Transfer Pricing

KPMG Acor Tax in Denmark

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What we do

We will prepare a search strategy in consultation with you, leveraging the same database as tax authorities to identify companies with a functional and risk profile comparable to your tested party.

In collaboration with you, we will identify and classify the tested party, ensuring that we target the best available comparable companies according to your specific circumstances.

Based on the tested party profile we will together set up a search strategy in the Orbis Database, identifying companies which are comparable to the tested party based on a set of objective and industry-proven criteria.

Leveraging the output of the search strategy, we will review the websites of 200 – 400 potentially comparable companies utilizing standardised procedures to eliminate non-comparable companies and to arrive at a final set of comparable companies.

Many transfer pricing audits center around benchmarking studies and can take place many years after a benchmarking study has been conducted. We therefore prioritize a detailed audit trail to document the information available at the time of the analysis.

Based on the tested party profile, we will identify and calculate relevant profit level indicators, demonstrating the arm’s length range of results for your tested party.

If you have multiple tested parties with similar functional profiles, we can – to the extent possible – create country-specific subsets to further enhance comparability

We leverage the same database that most tax authorities use, Moody’s Orbis database (formerly BvD). This decreases the risk that tax authorities are able to identify different comparable companies than we can in case of an audit.

The results of our benchmarking studies can easily be included in your global transfer pricing documentation using our automated transfer pricing documentation tool, TPAD.

Explore TPAD

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Meet the Transfer Pricing team