Closing the Gap Between Local Files and TP Forms

by | Sep 9, 2025 | Blog

Why TP Forms matter in Transfer Pricing compliance

In global Transfer Pricing compliance, attention often goes to preparing strong local files and master files. Yet, the Transfer Pricing forms (TP Forms) filed with local tax authorities are just as important. These forms summarise key data from the local file, but too often they are treated as a last-minute exercise.

When TP Forms are incomplete, inconsistent, or misclassified, the risks are high: penalties, audits, and reputational damage. For multinational enterprises, avoiding these issues is critical.

What goes wrong today in TP Form compliance

Wrong data and misclassifications

Local teams without Transfer Pricing expertise often submit incorrect financials or confuse methods (e.g., cost plus vs. TNMM). These errors quickly undermine compliance and may trigger penalties.

Discrepancies between local file and TP form

A frequent issue is that the TP Form data does not match the local file. Without a structured cross-check, inconsistencies slip through, raising red flags with authorities.

Inconsistent terminology across jurisdictions

Countries describe transactions differently: “procurement,” “purchase of goods,” or “sale of goods.” Without a translation layer, these differences create mismatches between TP Forms and documentation.

Human errors from manual workflows

Copy-pasting between Excel, XML, PDF, or web forms introduces mistakes. We have heared about cases where the local teams even used wrong entity names (e.g., “MNE Group Supply Chain” vs. “MNE Group Supply Inc.”) creating unnecessary inconsistencies between TP Form and local file documentation.

Complex and changing form requirements

Some jurisdictions require totals per counterparty, others include tick-box compliance questions (e.g., restructurings, asset sales). On top of this, TP Forms are frequently updated, creating a maintenance burden across 40+ countries.

Our vision: automating TP Form preparation

At Intra Pricing Solutions, we are developing a new TP Form Module for TPGenie to address these challenges head-on.

Consistency across local files and TP Forms

Data entered once in the local file will flow directly into the TP Form. This ensures alignment between local files and TP Forms, reducing risk and saving time. Our free Compliance Tracker can be user to see latest changes in legislation and most recent updated to TP Forms in countries where your MNE has activity.

Smart automation and translation

A backend mapping engine will harmonise transaction categories across countries. The tool will pre-fill TP Forms automatically, leaving placeholders where manual input is still required.

Validation with AI-powered cross-checks

Using our AI TP Copilot, we will automatically compare local files with TP forms. Discrepancies—wrong amounts, methods, or transaction descriptions—will be flagged before submission. This reduces the risk of penalties and avoids triggering unnecessary audits.

Step-by-step rollout

We will not attempt to automate every TP form immediately. Instead, our roadmap is designed for scalability:

  1. Start with 30–40 standard TP forms that are widely used and relatively simple.

  2. Provide pre-filled forms with placeholders and guidance for manual fields.

  3. Expand to more complex forms that require counterparty aggregation or tick-box confirmations.

  4. Link with our Compliance Tracker, ensuring all TP form templates and deadlines are always up to date.

Why this matters for multinationals

For MNEs filing in many jurisdictions, TP form compliance is one of the most error-prone parts of the Transfer Pricing process. By automating preparation, harmonising terminology, and using AI validation, we can help organisations:

  • Avoid costly Transfer Pricing audits and penalties

  • Ensure local files and TP Forms remain consistent

  • Reduce the workload on local teams

  • Build a scalable compliance process for the future

Conclusion

TP Forms may look like a simple administrative step, but in reality, they carry significant compliance risk. Wrong classifications, inconsistent data, and manual errors all create vulnerabilities.

At TPGenie, we are closing this gap by developing a TP Form Module that combines automation, translation, and AI-powered validation. Step by step, this will give multinational enterprises the tools to prepare accurate TP Forms, aligned with local files, and ready for tax authority scrutiny.

Transfer Pricing compliance should not be left to chance, especially not at the TP form level.