Transfer Pricing

Transfer Pricing

Literature Review

Words 900

Transfer pricing is the pricing of intercompany transactions that take place between associated businesses. The transfer pricing procedure establishes the amount of income that each party makes from that transaction. Taxpayers and the taxing authorities center solely on related-party transactions, which are termed controlled transactions, and have no direct impact on sovereign party transactions, which are termed uncontrolled transactions. Transactions, in this context, are determined generally, and include sales, licensing, leasing, services, and interest. (more…)