Map the Ownership & Relationship Structure
Identify related companies and individuals, ownership percentages, and each party's position within the group.
A transfer pricing assessment begins by understanding the group structure and the nature of relationships and transactions, rather than by preparing a single form. Final requirements vary according to the organization's circumstances and applicable regulations.
Identify Transactions
Compile related-party transactions by type, value, counterparty, and period, such as services, financing, goods, and intangible assets.
Collect Contracts & Policies
Provide agreements, pricing policies, cost-allocation mechanisms, and correspondence explaining the commercial purpose of the transaction.
Understand Functions & Risks
Document what each party contributes, the assets it uses, and the risks it actually assumes.
Link Financial Data
Transaction values should be reconcilable to financial statements, accounting records, and related disclosures.
Quick Checklist
Before getting started, make sure the following are available
- Group & Ownership Structure
- Related Parties List
- Break Down Transactions by Type
- Contracts & Agreements
- Internal Pricing Policies
- Reconciliable Financial Data
Professional Notice
This content is general and educational and does not replace an assessment of the organization's specific circumstances based on its data and current official requirements.