Transfer Pricing - refers to the setting, analysis, documentation, and adjustment of charges made between related parties for goods.
Thu, 26 May 2011 00:08:50
Transfer Pricing Defines: as the setting, analysis, documentation, and adjustment of charges made between related parties for goods, services, or use of property (including intangible property). Transfer prices among components of an enterprise may be used to reflect allocation of resources among such components, or for other purposes. OECD Transfer Pricing Guidelines state, “Transfer prices are significant for both taxpayers and tax administrations because they determine in large part the income and expenses, and therefore taxable profits, of associated enterprises in different tax jurisdictions.”