How does transfer pricing technology support tax teams and CFOs?
Transfer pricing technology helps organizations manage and automate transfer pricing processes, including:
- performing transfer pricing risk assessments;
- supporting Country-by-Country Reporting;
- conducting benchmarking studies;
- managing cost allocations;
- establishing and monitoring intercompany pricing;
- identifying anomalies and opportunities for improvement within transfer pricing processes;
- supporting transfer pricing documentation and compliance.
Which transfer pricing solution is right for your organization?
Technology requirements depend on the size of the organization, the availability of data and the complexity of transfer pricing processes. Therefore, we assess not only solutions developed by KPMG, but also existing systems and technologies already in place across the organization.
Based on this assessment, we help select and implement a transfer pricing solution that aligns with the organization's tax operating model, compliance requirements and data infrastructure.
Our Approach to Transfer Pricing Technology
Transfer pricing technology delivers the greatest value when aligned with existing processes, governance frameworks and control measures. For that reason, we first assess the design of transfer pricing processes and the quality of available data.
Our support includes:
- improving transfer pricing data quality;
- automating recurring transfer pricing activities;
- strengthening transfer pricing controls;
- supporting operational transfer pricing;
- enhancing reporting and compliance processes.
Our approach is scalable and suitable for both multinational enterprises and organizations facing growing transfer pricing requirements.
KPMG Digital Gateway technology
Digital Gateway is KPMG's proprietary cloud-based platform. It enables organizations to keep pace with the growing expectations of internal stakeholders, management, business partners and regulators.
Through advanced analytics, KPMG Digital Gateway provides insight into the global tax landscape. This helps improve tax function processes at a group level, strengthen risk management and support the development of actionable insights.
Our transfer pricing specialists work closely with professionals from Tax Management Consulting to develop solutions tailored to the specific needs of each organization.
Links & Downloads
FAQ
What are the biggest challenges in managing transfer pricing processes within a multinational group?
Many multinational organizations work with large volumes of data spread across multiple ERP systems, jurisdictions and business units. As a result, maintaining a consistent transfer pricing policy, monitoring intercompany transactions and meeting documentation requirements can be challenging. Transfer pricing technology helps standardize processes, improve data quality and respond more efficiently to requests from tax authorities.
How can transfer pricing technology help manage tax risks?
Tax authorities are increasingly using data analytics and digital audit techniques to assess transfer pricing positions. As a result, it is important to maintain visibility over the implementation of transfer pricing policies and the underlying data. Technology can help identify anomalies in intercompany pricing, perform risk assessments and centralize relevant information. This enables organizations to identify and manage potential tax risks at an earlier stage.
Why are more CFOs and tax teams investing in operational transfer pricing technology?
For many organizations, the focus is shifting from transfer pricing documentation alone to the effective implementation of transfer pricing policies. Operational transfer pricing technology supports activities such as calculations, monitoring, cost allocations and the ongoing management of intercompany pricing throughout the year. This results in more efficient processes, improved data quality and greater control over tax and financial risks.
