Comparability Studies

Comparability study is part of the transfer pricing file. It is an analysis required to document compliance of pricing transactions between affiliates according to the arm’s length principle by using information provided by specialized databases.

FISCALEX

FISCALEX will provide you with valid DATABASES for conducting relevant benchmarking studies

FISCALEX TAX team can assist you with the preparation of benchmarking studies in developing transfer pricing files or transfer pricing policies.

Conducting a comparability study involves following several steps
1: Comparability study starts by establishing research needs regarding the transaction involved and transforming it into a research topic through building research hypotheses, selected sample, model used and research objectives according to the client's needs;
2: Execution of actual research by querying the databases used to test the hypotheses established on step 2.On this stage the comparable variables for the tested party are established, whose transactions regarding transfer pricing are being analyzed.
3: Statistical modeling of data queued from the database according to step 3 together with testingthe selected model and interpreting results obtained according to research objectives represent the economic analysis necessary to document the conformity of the arm`s length principle for the tested transactions;
4: Presenting conclusions of research carried out in the form of a report that documents transfer pricing on the selected transactions, including the economic and functional analysis that form the premises for the comparability study based on which the research hypotheses were based, model used and the research objectives set.