Conducting a Transfer Pricing Benchmarking study is essential for organizations when applying the arm’s length principle, to determine the appropriate transfer pricing for Related Party transactions. This process involves a scientific and statistical comparison between a controlled transaction and similar transactions between independent entities carried out under comparable conditions.
As part of UAE transfer pricing advisory services, BAM Advisors assist with tailored transfer pricing benchmarking analyses to ensure compliance and support arm’s length pricing policies.
What is a TP Benchmarking Study?
A TP Benchmarking study helps organizations within Multinational Enterprises (MNEs) to assess whether the transactions between related parties are conducted at arm’s length. This analysis helps ensure that transfer prices are set fairly and in compliance with international standards, minimizing risks and aligning with regulatory requirements.
What is the purpose of TP benchmarking?
The key purpose of a benchmarking study is to determine a range of arm’s length prices that can be applied to the related party transactions by identifying and using sources of comparable similar transactions of third parties in a given market.
Types of TP benchmarking we offer
- Operational activities such as manufacturing, purchasing and sales of products
- Intra-group Services
- Financial Transactions/Intra-group Loans
- Licensing of IP (Royalty Studies)
