Transfer Pricing Benchmarking

What is transfer pricing?

How to use transfer pricing?

Transfer Pricing is the practice of setting prices for transactions between related entities within a multinational enterprise, ensuring they are conducted at arm's length and comply with tax regulations.

To maintain OECD tax compliance, optimise global tax positions, avoid double taxation, and ensure fair allocation of profits across international operations where value is being created.

Transfer pricing consulting

Understanding what to do in different Transfer Pricing scenarios can be a challenge, the good news is our team have confronted many of the challenges that you are going to face.

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Projects delivered in 5 years

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What are the transfer pricing methods?

Comparable Uncontrolled Pricing Method

The Comparable Uncontrolled Pricing (CUP) method compares the price charged for goods or services in a controlled transaction to the price charged in a comparable uncontrolled transaction under similar circumstances. It ensures fair market value by benchmarking against independent deals.

Transfer Pricing method

The Resale Price Method

The Resale Price Method determines the transfer price based on the price at which a product purchased from a related party is resold to an independent party. The resale price is then reduced by an appropriate gross margin to cover the reseller’s costs and profits, ensuring fair pricing.

The Cost Plus Method

The Cost Plus Method calculates the transfer price by adding an appropriate markup to the costs incurred by the supplier in a controlled transaction. This method ensures that the selling entity covers its costs and earns a reasonable profit margin, aligning with what independent parties would earn.

Transactional Profit Method

The Transactional Profit Method analyzes the net profit margin from controlled transactions to ensure they are consistent with the net profit margins earned by independent enterprises in comparable transactions. This method helps maintain fair and consistent pricing across related party dealings.

Comparable Profits Method

The Comparable Profits Method evaluates the profit levels that a controlled taxpayer should earn based on the profit levels of similar independent enterprises. This method uses industry benchmarks and financial ratios to ensure that the profits earned in controlled transactions are in line with market standards.

Profit Split Method

The Profit Split Method divides the combined profits from intercompany transactions based on the relative value of each party’s contribution. This method is particularly useful when transactions are highly integrated, ensuring that profits are allocated fairly based on each entity’s role and value added.

Your transfer pricing journey

Scaleup support calls

We guide you through the challenges regarding crossborder scaling with support calls that deliver.

• Crossborder advice

• Transfer pricing advice

• Actionable follow-ups

• Accountability

Build your value with iVC

Value chain consulting

Within the first three months, our team identifies high-priority workflows you need support on, and where Al can speed them up.

• Actionable outcomes

• Your value chain creation

• Value-derived from knowledge

• Focus on scaling

iVC partnership

Of engagements started, 80% of clients make iVC their trusted advisor for global expansion.

• Long-term partnership

• Strategic alignment

• Trusted advisory

• AI-Enabled and data focused

Trusted by senior executives

Here's what our clients think of the work we deliver for them. We deliver positive and profitable outcomes for C-Level executives across cross-border expansion and transfer pricing.

The team at iVC Consulting is young but nevertheless very experienced and knowledgeable. They quickly obtained a good understanding of our quite complex global structure and resulting needs in relation to a global transfer pricing policy. They approached the problem as if they were internal employees of Docplanner - in a very pragmatic and efficient way. I was also impressed by their modeling skills. Highly recommend, especially for high-growth tech companies.

Peter Bialo
CFO and Board Member
DocPlanner

Transfer Pricing and Beyond! If you are looking for a quality service and advice that works in practice, iVC Consulting should be your choice. Extensive professional knowledge, knowing its client, practical approach - that's what makes a difference.

Agnė Petkevičiūtė
Director of Tax
Vinted

★★★★★

★★★★★

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Frequently asked questions

What is transfer pricing?

Transfer pricing sets the prices of transactions between related companies in different countries, ensuring compliance with tax regulations and fair distribution of profits.

How does iVC Consulting support transfer pricing needs?

We provide tailored transfer pricing strategies, documentation, and compliance support to align with local and international tax requirements.

What industries does iVC Consulting serve in transfer pricing?

We work across most sectors, with focus on fintech, healthtech, e-commerce, and technology, where transfer pricing is crucial for cross-border operations.

How can I start working with iVC on transfer pricing?

You can reach us by booking a meeting with us or just write an email to hello@ivc-consulting.com. We’ll discuss your needs and start developing a tailored transfer pricing strategy.

How does iVC’s approach differ?

Our DID² approach—Design, Implementation, Documentation, and Defence—ensures end-to-end transfer pricing solutions that are precise, efficient, and defendable.

What risks does transfer pricing help mitigate?

Effective transfer pricing reduces the risk of audits, penalties, and double taxation by ensuring transactions between entities meet regulatory standards globally.