Analysis 
Economic Analysis (Benchmarking)
Economic analysis is required for the assessment of comparability of the controlled transactions and the uncontrolled transactions. Internal comparables for economic analysis areprice or amount on the economic transactions carried out between the taxpayer and an unrelated party. External comparables are prices or amount on the comparable transactions carried out between unrelated parties in the free market. Adjustments can be made if material differences are detected between controlled and uncontrolled transaction and these differences can materially affect the accuracy of comparability. In such cases, adjustment is required to eliminate the effect of any differences.
Since, the arm’s length principle is based on comparisons of the conditions of controlled and uncontrolled transactions; the Economic Analysis includes an assessment of the best transfer pricing method to establish/verify the controlled transactions among those methods allowable under the Turkish transfer pricing rules. The benchmarking analysis also includes, any adjustments for functional differences (including inventory policies/risks, etc.), preparation of search matrix, financial data, business description appendices, and etc., in addition to the actual write-up of the analysis.
