Best Transfer Pricing Software - Page 2

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Researched and written by Nathan Calabrese

Transfer pricing software helps companies set fair prices for transactions between their international branches, ensuring correct tax payments and avoiding penalties. It is used by tax and finance teams in multinational corporations with subsidiaries to manage the pricing of internal exchanges of goods, services, or intellectual property across different countries. It's important for optimizing global tax liabilities, minimizing tax risks, and ensuring compliance with international tax laws.

Transfer pricing software prevents penalties and double taxation by ensuring intercompany prices meet the Arm's Length Principle, which dictates that transactions between related parties should be priced as if the transactions involve unrelated parties. It also automates data-heavy calculations, simplifies international reporting, and provides audit trails, reducing human effort and compliance risks.

This software is typically a standalone solution that integrates heavily with enterprise resource planning (ERP) systems to receive transaction data and send back adjusted financial results.

To qualify for inclusion in the Transfer Pricing category, a product must: