What is transfer pricing?
Transfer pricing refers to the prices charged for goods, services, or intellectual property transferred between related entities (e.g., a parent company and its subsidiary). Tax authorities require these prices to be at “arm’s length” — meaning they should be similar to what would be charged between unrelated parties.What Commenda helps with
Policies
Create and manage transfer pricing policies that define how intercompany services are priced.
Benchmarking
Track benchmarking studies that support your pricing decisions.
How it works
Define relationships
Set up corporate relationships between your entities (parent-subsidiary, etc.) in the corporate structure section.
Connect accounting data
Connect your accounting software to automatically pull intercompany transaction data.
Create policies
Document your transfer pricing policies, including the services provided and pricing methodology.
Transfer pricing documentation requirements vary by country. Commenda supports both local file and master file documentation approaches.