GTP® Benchmarks -
Arm's Length Analysis / Profit Level Indicators

GTP® Benchmarks supply transfer pricing managers with profit level indicators and other key performance indicators such as profit markups for cost plus methods, gross margings for the resale price minus methods. Whether for planning and budgeting, or for documentation of arm's length income allocation, GTP® Benchmarks provide for such third-party information. If reguarly updated (e.g. annually or biannually), the transfer pricing systems is established with a grid of arm's length information.

Statistical information on performance indicators like interquartile ranges is derived from the GTP® Benchmark Platform. For that GTP has been analyzing internationally available data sources.

GTP® Benchmarks are widely deployed in transfer pricing systems of mid-sized and large multinational groups.

Services on GTP® Benchmarks:

  • Professional input from GTP experts
  • Digital data gathering from the client prior to the analysis
  • Distinguished standard service packages:

    • GTP® IndustryCheck: industrial screening
    • GTP® Arm’s Length Check: functional screening
    • GTP® Margin Analysis: complete tested
      party screening
  • Interquartile ranges and other statistics
  • Analysis across countries, regions, industries, functions
  • Three years as default evaluation period
  • Report delivery as pdf, xls, xml

GTP® Benchmarks: budgeting, arm's length testing, transfer pricing reports

GTP® Industry Check GTP® Arm’s
Length Check		 GTP® Margin Analysis
Sector Selection x x x
Functional Selection (x) x x
Analysis Time Period (Years) 3 3 3-5
Countries/Regions x x x
Planning Processes x
Operative Transfer Pricing x
Arm's Lengths Test x x x
Tested Party Integration x x
Usable in GTP® Module x x x
Usable with other Documentation Concepts x x
Description of Functions and Risks partly x
Product Classification Low cost, ad hoc, comparative information Basic report
for the tax audit		 Classical
transfer pricing report
Application Scenario Budgeting, planning
Operative transfer pricing
Documentation		 Arm's length documentation
Tax audit
Monitoring		 Arm´s length documentation for
Low risk companies


    Our recommendation for deploying GTP® Benchmarks:

  • GTP® Industry Check service package: low cost ad hoc arm´s length information, also applicable to furnish the transfer pricing guideline or for decision-making processes other than transfer pricing.

  • GTP® Arm’s Length Check: for the pending tax audit, established with qualitative and quantitave information on the tested-party fact pattern.

  • GTP® MAC Margin Analysis: this packages contains the full transfer pricing report, i.e. the quantitative analysis results and the qualitative description of the fact pattern, the function and risk analysis, the transfer pricing methods, etc.

Benchmarks for the modern transfer pricing system - some questions

  • Do you have already the benchmark information on your cost plus markup for your contract manufacturing function?
  • Do you need guidance on the markup on intra-group services or gross margins on sales activities?
  • Is the transfer pricing system of your group established with arm's length ranges on profit level indicators?
  • Do you need arm's length analysis results for your documentation?

GTP® Benchmarks: Your Service Package on Arm's Length Transfer Pricing.