Transfer pricing: Why GenAI will significantly simplify the creation of master files and local files in future
Generative Artificial Intelligence (GenAI) is an innovative technology that makes it possible to automatically create content by extracting, summarizing, interpreting and formulating texts and figures from various data sources. With GenAI, the automated creation of transfer pricing documentation becomes a reality.
Transfer pricing documentation refers to the written recording and analysis of transfer prices between related companies, which includes the creation of both local files and master files to document and support compliance with tax regulations.
The creation of such documentation is a complex and time-consuming task that places high demands on quality and consistency. GenAI can already significantly simplify and speed up this process.
By combining GenAI with conventional technologies, the documentation process is considerably simplified for taxpayers. This time saving allows professionals in the transfer pricing department to focus on value-adding activities - for example, planning or defending transfer pricing during tax audits.
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Advantages of GenAI for Transfer Pricing
Precision and consistency of content
GenAI can be used to improve the accuracy and consistency of information in master files and local files. Automation can reduce or even prevent errors caused by manual entries. In addition, the information in local files and master files can be better coordinated and presented consistently in order to avoid contradictions or inconsistencies. Automation therefore contributes to a higher quality and consistency of transfer pricing documentation.
Increased efficiency and cost savings
Companies can automate and optimize their work processes, resulting in significant time and cost savings. An efficient way of working enables companies to use their resources for value-adding activities.
Automated creation, full control
The monitoring of automation by specialist employees remains essential. This is because only they can check the plausibility of the GenAI results and make adjustments if necessary. This ensures that the automated creation of reports and analyses in the transfer pricing area is not only efficient, but also reliable and precise.
GenAI marks an evolutionary step in transfer pricing documentation. The integration of artificial intelligence into the documentation process not only increases efficiency, but also raises the quality of the results to a new level. With GenAI, companies can better manage the complexity of this task and focus on strategic, value-adding activities while the technology does the tedious work.
GenAI for the tax department: precision and efficiency
Innovative process optimization through GenAI
The integration of generative AI into tax processes is revolutionizing the way tax departments work. GenAI in pre-trained tax chatbots makes it possible to generate immediate and precise answers to tax questions, improves knowledge sharing and reduces the workload of employees. When GenAI is integrated into tax processes, it automates and refines data analysis, increasing efficiency and minimizing risk. GenAI helps to minimize errors, refine tax processes and meet compliance requirements based on rules. Using GenAI allows tax experts to focus on strategic tasks by automating routine data entry and calculations. This not only speeds up the processing procedure, but also increases the precision of tax documentation.
Use case: GenAl for TP documentation
GenAl will revolutionize the way tax professionals work by automating time-consuming documentation to increase efficiency and maximize productivity.
- Automated creation of local files and master files
- Scalable solution for growing requirements
- Efficient extraction and grouping of transactional data
- Update according to changing tax regulations
Benchmarking
In future, Generative Kl will play a central role in benchmarking, particularly in the collection, analysis and processing of data from different companies and sectors.
- Integration into existing benchmarking processes
- Collection and analysis of large amounts of data
- Identification of patterns and trends
- User-friendly compact analysis based on individual stakeholder needs
- Improvement of tax compliance including data tracking
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Your contact
Magdalena Bonna
Partner, Tax, Global Transfer Pricing Services
乐鱼（Leyu）体育官网 AG Wirtschaftspr眉fungsgesellschaft
Robert Regendantz
Partner, Tax Transformation
乐鱼（Leyu）体育官网 AG Wirtschaftspr眉fungsgesellschaft
Christian Stender
Partner, Chief Technology Officer Tax
乐鱼（Leyu）体育官网 AG Wirtschaftspr眉fungsgesellschaft
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