The big picture or the overview of flows between affiliated companies of the same group
The transfer pricing policy is particularly important for groups of companies, as it provides an overview of the entire flow of activities carried out by the companies that are part of these groups.
- The drafting of transfer pricing policies within a group of companies involves the following steps:
- Identification of all group companies and key departments in each company,
- Discussions with key personnel within the group and its companies to determine the types of intra-group flows / transactions,
- Discussions with key personnel within the group and its companies to determine the functions performed by each group company / department, the risks assumed and the assets used in intra-group flows,
- Identifying the profile of the group companies:
a. Manufacturer / distributor / service provider profile with full functions and risks,
b. Manufacturer / distributor / service provider profile with limited functions and risks.
- Identifying the most appropriate method of transfer pricing,
- Preparation of benchmark studies for each type of intra-group transaction in accordance with the chosen method.