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Responses to questionnaire completed by Transfer pricing software providers

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TP software providers survey

Foreword

• Transferpricingweb.com developed a questionnaire to provide an insight into the market of Transfer Pricing (“ TP” ) software providers

• The participants who responded to our questionnaire and their respective TP software (tools) are listed below:

  1. Optravis LLC (“Optravis”): TP Management Tool
  2. Universal Units GmbH (“Universal Units”): U2 TP Management
  3. Intra Pricing Solutions BV (“Intra Pricing Solutions”): TP Genie
  4. TP Tuned BV (“TP Tuned”): Reptune
  5. TP Hyperion: TPH TP for Hyperion Financial Management
  6. Tax Model BV (“Tax Model”): TaxInterco, TaxBenchmark, TaxTPA, TaxRating, TaxCBC
  7. Longview: Operational TP
  8. Tytho: TP Things

• In our questionnaire, we requested responses for core features of their respective TP software, i.e. whether the tool was primarily meant to facilitate TP risk assessment, financial analyses relating to TP, preparation of TP documentation, management of TP work flows and/or contained commercial source data relevant for TP

• Furthermore, we questioned whether their TP software contained specific functionalities, for instance, the ability to create local and master files, to delegate tasks, to connect with existing financial/ERP software and to conduct margin calculations and analyses

• We concluded with some questions relevant to understand the pricing of the TP software, implementation process, access and support

• Please refer to the next slides for a summary of responses provided by the participants to specific questions. The comprehensive and respective responses of the participants’ are provided as a separate Appendix to this presentation

• We are highly grateful to all participants for their contributions!

Click here to download the detailed results

 

LOCAL FILE MANUFACTURERMASTER FILELOCAL FILE DISTRIBUTOR

Findings of online survey transfer pricing documentation software

We hereby present the findings of the online survey on transfer pricing documentation software which we conducted in September 2016.

The main goal of the survey was to get a feel for the selection criteria that are used by the (potential) buyers of transfer pricing documentation software. Before we started the survey, it was really a black box to us what selection criteria MNEs would consider relevant. Would it be the reputation of the software provider, user-friendliness, core features of the software, or would other considerations be relevant for the final decision? We think that the findings of this survey shed some light on this matter.

We would like to thank our respondents for their time and efforts.

As a follow-up, we will present a comprehensive overview of the transfer pricing software market in one of our next articles.

Click here to download the detailed results and our analysis. 

 

Executive summary

This online survey investigates the criteria that are relevant for financial, tax and transfer pricing professionals in the process of selecting transfer pricing documentation software. The key conclusions of our survey are:

  • Most respondents considered improving the quality and consistency of the transfer pricing documentation as the most important reason for using transfer pricing documentation software.
  • More than 75% of our respondents considered the ability to prepare a Master file and Local files as the (most) important core functionality of the transfer pricing documentation software. The capability to prepare intercompany agreements was rated as the least important core functionality.
  • Apart from the core functionalities, the effectiveness of the software was considered to be a very important feature of the software. The running/operating costs of the software were least important to our respondents.
  • 61% of our respondents considered it (very) important to operate the software on the company’s own server.
  • Limited importance was assigned to the question whether the transfer pricing documentation software has to be provided by a well-known, established company.
  • Our respondents were indifferent or even considered it unimportant whether or not the software provider also offers transfer pricing related services (e.g. benchmark studies or functional analysis support).
  • Additional criteria that were important to our respondents in the selection process of transfer pricing documentation software were:
    • the software should be flexible so that it could capture changing situations in the business;
    • the software should be capable to annually roll over information used in the prior year; and
    • the software should contain access to upgrades to capture changes in transfer pricing legislation.

The online survey we conducted was visited by 120 respondents of which 65% completed the questionnaire in full or in part. The majority (78%) of our respondents were working with MNEs. Out of this group, by far most of the respondents represented a MNE with a turnover of more than Euro 750 million (53,8%). The remaining respondents (22%) were transfer pricing and tax advisors. Although we cannot disclose our respondents on an individual bases, the survey was completed by staff of companies from all over the world, i.e. the Americas, Europe and Asia.

Click here to download the detailed results and our analysis.

 


This update is provided by:

www.transferpricingweb.com provides a wide variety of transfer pricing template agreements and framework reports. All documents are written by renowned transfer pricing experts and easy to use, preconfigured, simple and intuitive. They contain ample sample wording and comprehensive guidance, are based on best practices and meet the latest Base Erosion and Profit Shifting (BEPS) requirements.

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