The report, brought to life through a recent webinar featuring speakers Raphaël Barelli Schaefer from Yanfeng International, Samit Shah from Grant Thornton US, and Borys Ulanenko, Advisor to Aibidia and founder of ArmsLength AI, dives deep into the state of transfer pricing practices across various sectors.

Some of the key trends and observations discussed in the webinar are presented below.
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Diverse Team Structures Reflecting Company Complexity

The survey highlights diverse approaches in structuring transfer pricing teams, revealing a common trend towards small, focused teams within larger organizations. However, a business's complexity and global reach significantly influence the team's size and structure, impacting how transfer pricing processes are managed internally.

Operational Challenges and Technological Solutions in Data Management

A critical insight from the report is the challenge companies face in managing transfer pricing data. With many relying on manual processes because of data spread across disparate systems, there's a clear move towards integrating technology to streamline operations and improve accuracy.

Webinar speakers also discussed the ubiquitous struggle with data management, emphasizing the ongoing transition towards robust ERP systems to consolidate data handling. Although challenging, this transition is vital for improving operational efficiency in transfer pricing processes.

The Shift Towards Specialized Software

The adoption of technology in transfer pricing processes is on the rise, yet nearly half of the surveyed companies still rely on traditional tools like Excel and Word for their transfer pricing needs. The trend, however, is leaning towards specialized software and comprehensive platforms, signaling a shift towards more sophisticated, automated solutions for transfer pricing documentation and operational efficiency.

The Increasing Intensity of Audits

With increasing scrutiny from tax authorities, companies report spending significant resources on transfer pricing audits. This underscores the importance of robust documentation and proactive risk management strategies to navigate the complex audit landscape effectively.

The webinar speakers touched on the increasing complexity of audits and the essential role of comprehensive and proactive preparation in navigating these challenges effectively. The discussion also covered strategies for managing tax authority scrutiny's escalating demands and complexities.

The Future is Digital and Data-Driven

As we move forward, the role of technology in transforming transfer pricing practices cannot be overstated. With regulatory requirements and the global tax landscape continuously evolving, companies must adapt to maintain compliance and optimize their transfer pricing strategies.

The insights from Aibidia's 2024 Report offer a roadmap for companies looking to benchmark their practices against industry standards and explore how technology can be leveraged to enhance their transfer pricing processes. To dive deeper into these findings and download the full report here.

We thank Raphaël Barelli Schaefer, Samit Shah, and Borys Ulanenko for their expert insights during the webinar.

To watch the full webinar, click here.