All glossary terms
Glossary term
Arm's Length Principle
The standard requiring related-party transactions to be priced as between unrelated parties.
Related terms
1
Jurisdictions
global
Definition
The arm's-length principle is the foundation of international transfer pricing under the OECD Transfer Pricing Guidelines and Section 482 regulations. Methods include CUP, resale price, cost-plus, TNMM, and profit split.
Examples
- A multinational documents royalty rates between related parties using a CUP analysis.
Related terms
Translations
ESprincipio de plena competencia
ZH公平交易原则
DEFremdvergleichsgrundsatz
FRprincipe de pleine concurrence
JA独立企業間原則
Citations
26 U.S.C. · 482
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- TermTransfer Pricing
- StatuteIRC §482
Cited by
- TermTransfer Pricing
Primary sources
- OECD Transfer Pricing GuidelinesVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.