TaxGuided
All glossary terms

Glossary term

Transfer Pricing

Pricing of transactions between related parties under arm's-length principle.

Related terms

2

Jurisdictions

us, global

Definition

Transfer pricing rules under Section 482 (U.S.) and OECD Transfer Pricing Guidelines require related-party transactions to be priced as if between unrelated parties. Documentation and benchmarking are typically required.

Examples

  • A U.S. parent selling services to a foreign subsidiary must price at arm's length and document the pricing.

Translations

ESprecios de transferencia
ZH转让定价
DEVerrechnungspreise
FRprix de transfert
JA移転価格

Citations

26 U.S.C. · 482

Related citations

Computed from the cross-reference graph. Links open the related entity on this site.

Primary sources

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.