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If your company has related entities that transact with each other, transfer pricing rules require you to document that these transactions are conducted at arm’s length. Commenda helps you manage this process.

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

1

Define relationships

Set up corporate relationships between your entities (parent-subsidiary, etc.) in the corporate structure section.
2

Connect accounting data

Connect your accounting software to automatically pull intercompany transaction data.
3

Create policies

Document your transfer pricing policies, including the services provided and pricing methodology.
4

Track benchmarking

Record benchmarking studies that support your arm’s length pricing.
Transfer pricing documentation requirements vary by country. Commenda supports both local file and master file documentation approaches.