Transfer Pricing Documentation

Documentation · Service 02

Transfer pricing documentation that holds up when it needs to

Intercompany transactions between related parties in different countries require documentation that can withstand scrutiny. Margyn prepares transfer pricing analyses and local-file reports built around your actual transactions — not off-the-shelf frameworks applied without context.

What this delivers

Documentation prepared to support your intercompany positions — not just to file

When tax authorities examine intercompany transactions, the question they're asking is straightforward: would unrelated parties have agreed to these terms? The documentation that answers that question needs to be grounded in a genuine functional analysis, supported by relevant benchmarking, and prepared with the specific jurisdiction's requirements in mind.

Margyn prepares transfer pricing documentation that addresses those questions directly — built from the specifics of your transactions, your functions, your assets, and your risks, rather than adapted from a generic template.

Functional analysis

A detailed analysis of the functions performed, assets used, and risks assumed by each related party in the transaction — the foundation of any credible transfer pricing position.

Benchmark study

A comparables search and economic analysis that supports the arm's-length nature of the pricing applied to your intercompany transactions.

Local-file report

A jurisdiction-specific report prepared in accordance with OECD guidelines and the documentation requirements of the relevant local tax authority.

A position worth understanding

Intercompany transactions without proper documentation carry a risk that tends to grow over time

Companies with related-party transactions across two or more countries are generally required to maintain contemporaneous documentation that justifies the pricing used. In practice, many businesses either don't have documentation at all, or have documentation that was prepared without a genuine functional analysis — which means it wouldn't hold up if examined.

The challenge is that transfer pricing exposure tends to be quiet until it isn't. Transactions accumulate over multiple years, and when an authority does examine them, the question isn't just about the current year. Gaps in documentation can make a routine review considerably more complicated.

Good transfer pricing documentation isn't about making a bold claim — it's about building a well-evidenced position that can be explained clearly, step by step, to someone who wasn't involved in the original transactions.

That's what this engagement is designed to produce: documentation prepared with that level of rigour, specific to your transaction types and the jurisdictions in scope.

The approach

How Margyn prepares transfer pricing documentation

Each engagement begins with a review of the transaction types and volumes in scope. The scope and structure of the documentation are agreed from that starting point — not assumed in advance. What follows is a methodical process built around your specific intercompany arrangements.

Transaction review

We identify and categorise the intercompany transactions in scope — services, goods, financing, IP licensing — and establish the volumes and terms that will form the basis of the analysis.

Functional analysis

We build the FAR analysis — functions, assets, risks — for each entity participating in the transactions, drawing on information from your team about how the business actually operates.

Benchmarking

We identify the most appropriate transfer pricing method for each transaction category and carry out a comparables search to support the arm's-length range used.

Local-file preparation

We prepare the local-file report in the format required by the relevant jurisdiction, referencing the functional analysis and benchmark study as supporting evidence.

What working together looks like

A collaborative process that respects your time while doing the work thoroughly

Most of the analytical work happens on our side. You'll be involved at the points where your knowledge of the business is needed — not throughout. The process is structured to minimise the burden on your team while producing documentation that reflects genuine understanding of the transactions.

Initial

Transaction scoping call

We discuss which intercompany transactions are in scope, the jurisdictions involved, and what documentation currently exists — or doesn't. This informs the engagement plan.

Discovery

FAR interview and data review

We work through the functions, assets, and risks of each entity with your team — typically via a structured conversation — and review relevant financial and contractual information.

Analysis

Benchmarking and methodology

We carry out the comparables search and economic analysis. This phase is largely internal — we'll flag any questions that arise about your transaction terms or pricing rationale.

Delivery

Report delivery and review

You receive the complete documentation package and a session to walk through the findings, conclusions, and the arm's-length range established for each transaction type.

Investment

Scope defined first, fee confirmed before work starts

Transfer pricing documentation engagements vary in complexity depending on the number of transaction types, the jurisdictions in scope, and the state of existing documentation. The fee below reflects a standard engagement. Scope is confirmed following the initial review, and the final fee is agreed in writing before work begins.

Service investment

$8,000 USD

Flat fee · Defined scope · Confirmed before engagement starts

Engagements covering a larger number of transaction categories or additional jurisdictions are scoped individually. The fee is always agreed before the engagement commences.

What's included

Transaction scoping review

Identification and categorisation of intercompany transactions to be covered by the documentation.

Functional analysis (FAR)

Full analysis of functions performed, assets used, and risks assumed by each related party.

Benchmark study and comparables search

Economic analysis establishing an arm's-length range for each transaction category in scope.

Local-file report

Jurisdiction-specific documentation prepared in accordance with OECD guidelines and local requirements.

Delivery review session

Walkthrough of the completed documentation package, including conclusions and the arm's-length ranges established.

Post-delivery clarifications

Follow-up questions addressed within a reasonable period after the documentation is delivered.

Methodology

The standards our documentation is built to

OECD Transfer Pricing Guidelines

All work is prepared in line with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, which form the basis for transfer pricing rules in most jurisdictions.

Jurisdiction-specific requirements

Local-file reports are prepared with reference to the specific documentation requirements of each jurisdiction in scope — not applied generically from the OECD standard alone.

Most appropriate method selection

We select the transfer pricing method — CUP, cost plus, TNMM, and others — most appropriate for each transaction type, based on the functional profile and available comparables.

Contemporaneous preparation

Documentation is prepared to reflect the period under review — not reconstructed after the fact. Timelines are agreed at the outset so the documentation is ready when it's needed.

Typical timeline

Engagements typically run six to ten weeks from confirmed scope to delivered documentation, depending on the number of transaction types in scope and the availability of your team for the FAR interview. Complex structures with multiple transaction categories may require additional time, confirmed upfront.

Our commitment

Documentation you can rely on — and understand

Transfer pricing documentation is only useful if it accurately reflects how your business works and can be explained coherently to a third party. We're committed to both — and to producing documentation that your team and your local advisors can engage with confidently.

Confirmed scope and fee

Engagement scope, deliverables, and fee are agreed in writing before any work begins.

Built on your information

The functional analysis reflects how your business actually operates — not assumptions made from outside.

Revision if needed

If any aspect of the documentation requires clarification or adjustment after review, we address it as part of the engagement.

Getting started

The path to completed documentation is straightforward from here

Send a brief description of your situation — the jurisdictions involved, the nature of the intercompany transactions, and whether any documentation currently exists. We'll come back to you about next steps.

Step 1

Send your message

Describe your situation briefly — jurisdictions, transaction types, current documentation status. No formal brief needed.

Step 2

Scoping conversation

We discuss the transactions, volumes, and jurisdictions to define the scope and confirm what documentation will cover.

Step 3

Engagement confirmed

Scope, deliverables, and fee agreed in writing. Work begins at a point that suits your timeline.

Transfer Pricing Documentation

Intercompany transactions that can be explained and supported — starting here

Tell us about your transactions, the countries involved, and what documentation you currently have. We'll take it from there.

Get in touch

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