Functional Profile: The Cornerstone of Transfer Pricing Comparability

Nikhil6817 Jan, 2026Business

Functional Profile is utmost important for Transfer Pricing comparability as it defines the true economic role of an entity by analysing functions performed, assets employed, and risks assumed. A robust functional profile ensures the selection of correct comparables, appropriate profit level indicators, and pricing aligned with value creation. Inadequate functional analysis often leads to mismatches, adjustments, and prolonged litigation. SKMC Global helps businesses build defensible functional profiles, conduct reliable benchmarking, and maintain compliant transfer pricing documentation, thereby reducing audit exposure and ensuring certainty in cross-border transactions.