AI-Powered Transfer Pricing: Revolutionizing Global Tax Compliance and Reporting

Abstract

The increasing complexity of global commerce and evolving regulatory landscapes have made transfer pricing a critical area for multinational enterprises (MNEs) seeking to ensure compliance with tax regulations while optimizing their operations. This paper examines the role of artificial intelligence (AI) in transforming transfer pricing practices, focusing on how AI technologies enhance tax compliance, reporting accuracy, and operational efficiency. By integrating AI-driven analytics, machine learning algorithms, and real-time data processing, companies can gain insights into their transfer pricing strategies, streamline documentation processes, and mitigate risks associated with tax audits. The findings highlight the potential of AI to revolutionize transfer pricing methodologies, enabling organizations to adapt to regulatory changes and improve overall tax governance.