Transfer Pricing Cannot Be Applied in Abstract – It Must Reflect Functional Reality

Nikhil6805 Feb, 2026Business

Transfer Pricing Cannot Be Applied in Abstract – It Must Reflect Functional Reality is a key principle in international taxation. Transfer pricing must align with actual business functions, assets, and risks rather than just contractual terms. Profits should be allocated based on real value creation and economic substance. SKMC Global helps businesses design compliant transfer pricing policies, conduct functional analysis, and maintain robust documentation to reduce tax risks and disputes.