Streamlining Transfer Pricing with Automated Tax Calculation and Entity Management

• Application Infrastructure & Middleware - Data Exchange & Integration
• Platform as a Service (PaaS) - Application Development Platforms

• Oil & Gas

• Maintenance
• Product Research & Development

• Inventory Management
• Machine to Machine Payments

• System Integration
• Testing & Certification

The client, a global industry leader in tax services, was facing a significant challenge in managing transfer pricing compliance requirements. The process involved a substantial amount of tax calculations, which were being done manually, resulting in a time-consuming and costly process. The client was seeking a solution to automate these calculations to make them faster and more cost-efficient. Additionally, the client needed a system to monitor transactions between various business units and legal entities more effectively. The transaction rules, methods, and tax calculations were previously kept, applied, and completed manually in Excel, which incurred substantial time and resources.

The client is a leading provider of a wide range of tax services to thousands of clients in nearly 100 countries worldwide. They help their customers address transfer pricing compliance requirements, as well as collect and report the data associated with transfer pricing. The client was seeking a solution to automate the tax calculations involved in these services to make them faster and more cost-efficient. They also required a system to monitor transactions between various business units and legal entities more effectively.

N-iX developed a transfer pricing platform that automated the tax calculations, reducing the amount of manual work and cutting operational costs. The platform included rules and methods that enabled selling goods and services to other legal entities at a minimum market price and with a minimum tax. It was capable of handling large amounts of data and allowed for economic analysis based on a number of indicators. A feature for generating legal agreements was also developed to simplify the process of signing them once all parameters were calculated. Alongside this, an entity management platform was developed that combined all the information about legal entities and enabled the transfer pricing platform to perform effective tax planning. The multi-tenant approach was utilized in developing both solutions, ensuring more efficient and cost-effective use of resources.

• The implementation of the transfer pricing and entity management platforms developed by N-iX has significantly streamlined the client's operations. The automation of tax calculations has not only made the process faster but also more cost-effective, eliminating the need for manual calculations. The entity management platform has enhanced the monitoring of transactions between various business units and legal entities, providing a comprehensive view of all transactions. The feature for generating legal agreements has expedited transaction execution, saving time and resources. The multi-tenant approach has ensured efficient resource usage and decreased maintenance costs associated with software development. The establishment of a CI/CD pipeline, development and deployment processes, and integration and unit testing has boosted the speed and efficiency of the software development process.

• Automated the calculation of transfer prices, making the processes faster and more cost-effective

• Streamlined the monitoring of transactions between parties with the entity management platform

• Accelerated transaction execution by developing a feature that allows to quickly generate legal agreements