Efficient Management of Transfer Pricing using Low-Code/No-Code Technology

In the current complex global business environment, multinational corporations are faced with the demanding task of effectively managing their transfer pricing structure. Transfer pricing, which involves setting arm’s length pricing for intercompany sales within a corporate group, has become a crucial element for tax compliance and corporate strategy.

Historically, many organizations have relied on manual processes and spreadsheets to handle transfer pricing calculations and documentation. However, these traditional methods have proven to be time-consuming, error-prone, and high-risk.

Challenges associated with traditional transfer pricing practices include increasing complexity, heightened risk of non-compliance, inefficiency, limited agility, and the possibility of errors, all of which can lead to substantial penalties and damage to a company’s reputation.

Low-code/No-code technology has emerged as a solution to these challenges. This technology allows tax professionals to design, customize, and deploy software solutions without the need for expert coding knowledge or complex ERP integrations. It empowers business users to build and launch new tools more efficiently, which can streamline transfer pricing processes.

Low-code/no-code platforms offer numerous benefits for transfer pricing, including automation of data collection, systematic application of transfer pricing methodologies, real-time currency conversion, advanced analytics, streamlined documentation generation and reporting, streamlined financial reporting, error reduction, scalability, version control, and facilitation of collaboration among global teams.

By incorporating low-code/no-code technology into transfer pricing calculations, what was once a labor-intensive and error-prone process transforms into an efficient, accurate, and auditable workflow. Tax professionals can focus on analyzing results, optimizing strategies, and ensuring compliance rather than being weighed down by manual data entry and calculations.

A&M’s Transfer Pricing and Digital Tax Services teams can develop a tailored solution to your organization’s transfer pricing policies and fact patterns. For more information, please contact their experts.