Transfer pricing methods

Companies Next20 Jul, 2023Business

Transfer pricing refers to methods which determine the prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises. It refers to the value attached to transfers of goods, services and technology between associated enterprises. An arrangement of transfer pricing is usually between related enterprises, such as holding and subsidiary companies. The arrangement specifies the transfer price for sale or purchase of goods between the holding and subsidiary companies.