Operational transfer pricing support combines specialized software and expert services to help with the daily execution, monitoring, and documentation of your transfer pricing policy. It enables you to automate repetitive tasks, gain control over your data, and remain consistently compliant. The goal is to increase efficiency and reduce risks. Read the overview article on Operational transfer pricing support
What forms of operational transfer pricing support are available?
Operational transfer pricing (OTP) support ranges from fully software-driven solutions to traditional, manual advisory services. A software-driven approach, like Coperitas, focuses on automation, central data storage, and self-service for maximum control and efficiency. A manual service approach relies more on the expertise of external consultants for performing calculations and preparing documentation.
| Component | Software-driven approach (like Coperitas) | Manual service approach |
|---|---|---|
| Data processing | You import data yourself via flexible templates (e.g., Excel) into a central, cloud-based environment. Our platform validates the data and makes it immediately available for analysis. | You provide data to an external party that processes it manually, often in separate spreadsheets. The process depends on the consultant’s availability. |
| Calculations & Monitoring | The platform performs calculations automatically. Through dashboards, you can continuously monitor results and perform risk analyses, for example, for Pillar II. | Calculations are performed periodically (e.g., at year-end) by an advisor. Insights are not available in real-time. |
| Documentation & Reporting | You generate consistent documents on-demand (such as Local Files or agreements) with our document generator and templates. There is no limit to the number of documents you can create. | Documents are prepared by the advisor upon request. Adjustments or new versions require additional time and budget. |
How does a software-driven approach differ from a manual service?
A software-driven approach gives you the tools to stay in control. You are not dependent on external schedules and can standardize processes. Our cloud application is designed to relieve you of repetitive work and provide you with direct insight. A manual service means you outsource the work, which can lead to less flexibility and higher ongoing costs.
What is the typical cost structure for operational transfer pricing support?
The cost of operational transfer pricing support depends on factors like the number of countries and entities, the complexity of your transaction flows, and the chosen service model. Common pricing structures include a fixed annual fee, a software license model, or a traditional hourly rate. At Coperitas, we use a price-friendly model with a fixed annual fee per country for predictability.
| Pricing Model | Description | Most suitable for |
|---|---|---|
| Fixed Annual Fee | A predictable, fixed price for an agreed set of services or software access for a full year. This is the model we use (per country), which makes budgeting simple. | Organizations that need clear, predictable costs and continuous access to a platform and support. |
| License Model (SaaS) | You pay periodically (monthly or annually) for the use of the software, often based on the number of users, modules, or entities. | Companies looking for a scalable software solution and wanting to align costs with actual usage. |
| Hourly Rate | You pay for the actual hours spent by a consultant. This model is flexible but can lead to unpredictable costs. | Organizations that occasionally need specific expertise or want to outsource a one-time, defined project. |
How do you determine the ROI of an investment in operational transfer pricing support?
You determine the Return on Investment (ROI) for operational transfer pricing support by weighing the annual costs against the concrete benefits. This includes direct cost savings through efficiency, lower spending on external advisors, and the financial impact of a reduced risk of fines and tax adjustments. A solid business case shows how the investment pays for itself through process optimization and risk management.
How do you calculate time and cost savings from automation?
You calculate the savings by estimating the number of hours your team spends annually on repetitive tasks (such as data collection, report creation, consistency checks) and multiplying this by the internal or external hourly rate. Automation through a platform like Coperitas significantly reduces these hours.
What impact does OTP support have on external advisory costs?
By having more control over your data and documentation yourself, you become less dependent on external advisors. You can perform much of the work in-house and engage advisors more strategically for complex advice instead of for expensive, routine tasks. This significantly lowers total advisory costs.
How can you justify the ROI of OTP support to management?
Justify the ROI with a business case that combines three pillars: 1. Cost Reduction: lower advisory fees and fewer manual hours. 2. Risk Mitigation: a consistent approach and audit trail reduce the risk of fines and disputes with tax authorities. 3. Efficiency: the team can focus on strategic work that adds value, rather than on repetitive tasks.
Conclusion
The right operational transfer pricing support helps you manage the complexities of day-to-day practice. Whether you choose a software-driven platform or a service model, the goal is always the same: efficiency, control, and compliance. At Coperitas, we believe in empowering tax professionals. Our software is designed to adapt to your way of working, automate tedious tasks, and give you full control, supported by a transparent pricing model and reliable support.