Transfer Pricing Questionnaire Generator
Create customized interview questionnaires for transfer pricing functional analysis. Select the transaction type and detail level to generate relevant questions that help you analyze functions, assets, and risks for robust transfer pricing documentation.
Transfer Pricing Questionnaire Generator
Generate a customized interview questionnaire for your transfer pricing functional analysis
About Functional Analysis in Transfer Pricing
Functional analysis is a critical component of transfer pricing compliance under the OECD Guidelines. It identifies which entity performs what functions, employs which assets, and assumes which risks in intercompany transactions. This analysis helps determine the appropriate remuneration for each entity based on the arm's length principle. Our questionnaire generator provides structured interview questions to help you collect this essential information from business stakeholders.
Benefits of Using a Structured Questionnaire
Using a structured questionnaire for functional analysis ensures you gather comprehensive, consistent information across all relevant transactions. This approach helps identify key value drivers, potential risk areas, and important factors affecting transfer pricing policies. The questionnaires provided by this tool are designed based on best practices and cover the specific nuances of different transaction types, helping you develop more defensible transfer pricing documentation.
Frequently Asked Questions
Common questions about this tool and how to use it
Why is a functional analysis important in transfer pricing?
Functional analysis is the foundation of transfer pricing compliance. It helps identify the functions performed, assets used, and risks assumed (FAR analysis) by entities in controlled transactions. This information is essential for determining comparability, selecting the appropriate transfer pricing method, and defending your transfer pricing policies to tax authorities.
How should I use the generated questionnaire?
The questionnaire serves as a structured interview guide for collecting information from business stakeholders. You can use it during meetings with operational teams, finance managers, or other key personnel who understand the intercompany transactions. The answers will help you document your functional analysis and develop a compliant transfer pricing policy.
Which transaction types are supported by this tool?
This tool supports four common types of intercompany transactions: tangible goods transfers, services, loans/financing arrangements, and royalty payments for intellectual property. Each transaction type has a specific set of questions tailored to the unique aspects of those transactions.
What's the difference between initial and detailed questionnaires?
The initial questionnaire includes 10 core questions that cover the essential information needed for a basic functional analysis. The detailed questionnaire expands to 40 questions that provide a comprehensive analysis suitable for complex transactions, high-risk areas, or transactions with significant value.
Can I customize the questionnaires after generation?
Yes, the generated questionnaires are intended as starting points. You can copy or download the questionnaire and then modify it to suit your specific business context, industry requirements, or country-specific regulations.
How often should I update my functional analysis?
Functional analyses should be updated regularly, especially when there are significant changes to the business structure, transaction flows, or operational functions. Many companies update their functional analyses annually as part of their transfer pricing documentation process, or whenever significant business restructuring occurs.