In an increasingly global economy, transfer pricing is one of the most significant issues that multinationals must manage to stay compliant and competitive. With large volumes of complex tax regulation to deal with from around the globe and including significant new regulations, the smallest details can make a big difference in terms of resolving a transfer pricing issue efficiently and quickly. Tax departments today need a comprehensive solution to help manage every step of the transfer pricing process and build a knowledge base that scales with your business. To help multinational enterprises to comply with tax regimes, ONESOURCE transfer pricing software is the end-to-end solution to handle your transfer pricing process.
What is Transfer Pricing?Transfer pricing is stated as the price paid for goods transferred from one economic unit to another. Assuming that the two units involved are situated in different countries, but belong to the same multinational firm. The term ‘transfer price’ is used to describe the actual price charged between the associated enterprises in an international transaction. Transfer pricing issues arise when entities of multinational corporations resident in different jurisdictions transfer property or provide services to one another. These entities do not deal at arm’s length and, thus, transactions between these entities may not be subject to ordinary market forces. Where the transfer price is different from the price which would have been charged if the enterprises were not associated and the difference gives rise the tax advantage, the tax is calculated on the basis of arm’s length price.
About ONESOURCETransfer Pricing starts with data managing information from internal and external sources and ONESOURCE Transfer Pricing helps companies to automate data collection from various global systems. Thus allowing them to compile foreign transaction information and supporting documents in a centralized location. The software's data suite, gives companies access to high quality public, private, and intangibles data for transfer pricing analysis. This transfer pricing software helps companies to evaluate their existing pricing and policies against the latest data as they create, implement and track new policies and manage and communicate policies across your business. ONESOURCE transfer pricing software also aids companies to set a standard that allows them to reduce out-of-period adjustments, review intercompany policy compliance, and make timely adjustments throughout the year.
Benefits of ONESOURCEONESOURCE transfer pricing software helps firms centralize and efficiently manage inter-company agreements so that they can be properly generated, updated and analyzed. Streamline drafting and execution of any transfer pricing agreement through a centralized repository of contract management and e-signature capabilities is also possible. The principal benefits of this software include:
- Profitability Monitoring
- Increased efficiency
- Less error occurrence
- Inter-company Agreement
- Documentation Compliance
Key Takeaways from 'Building the Future of Transfer Pricing With ONESOURCE'
- ONESOURCE enables easy generation and management of inter-company agreements and the process of gather e-signatures.
- This transfer pricing software helps companies to avoid starting contracts from scratch as template provisions help them to eliminate errors.
- ONESOURCE transfer pricing software centrally stores all agreements thus making it easy to compile agreements for documentation purposes.
- The software identifies and provides alerts when contracts are about to expire to avoid any gaps in coverage.