Category: Transfer Pricing Methods
Transfer Pricing Methods are used to establish transfer prices in controlled transactions. Traditional transaction methods and transactional profit methods can be used to establish whether the conditions imposed in the commercial or financial relations between associated enterprises are consistent with the arm’s length principle.
Traditional transaction methods are the comparable uncontrolled price method or CUP method, the resale price method, and the cost plus method.
Transactional profit methods are the transactional net margin method or TNMM and the transactional profit split method.