Each transaction type requires different information to be communicated in your local file. Until now, it was impossible to add this transaction-specific information to TPdoc. But, we have developed a way for you to add specific royalty benchmark information when working on a royalty transaction. Based on your transaction type, TPdoc will ask for different input to ensure that all needed information is covered. The royalty transaction chapter for your local file is then updated to match the new information. All you have to do is select the desired template and build the local file.
The existing royalty transactions still work like they did before and still make use of the old transaction template, but if you want to update them you will need to update the benchmark. You can do this by clicking on the “edit” button for the benchmark and entering the newly required information. By re-selecting the template, you’ll force the template to be rebuilt with the newest transaction types, including the new royalty chapter.
With the addition of this royalty-specific information, TPdoc allows you to ensure that your transfer pricing document complies with the applicable regulations.
Now, we are further expanding the option of having transaction-specific information by introducing a new sub-category to the financial transaction in the canvas: financial loans.
The financial loans section allows you to add loan-specific data into TPdoc, such as loan type, remuneration, interest rate (fixed or floating), and benchmark results in base points. With seamless integration, adding financial loan data to your local file has never been easier. All you need to do is select the desired template and build the local file.
The existing financial transactions remain intact and are now labelled as ‘Financial other’. If you want to use the new template for one of your existing loan transactions, simply switch the transaction type to ‘Loan’ and you are good to go. Note that when switching the transaction type, existing benchmarks will be removed from that transaction. You will need to redo the benchmarks and this time you will also be required to add loan-specific information.
With the addition of this transaction-specific information to TPdoc (royalty and financial loan), TPdoc allows you to comply with applicable regulations regarding your transfer pricing document. If you have any feedback or requests, don’t hesitate to contact us.