Transfer Pricing Principle

Transfer Pricing Definition is the price used when affiliated parties transact either between divisions or between entities within a business group member. Rules and methods for valuing transactions within and between companies under common control or ownership.

Transfer Pricing Purposes:

- Business Objective

1. To make costs more efficient
2. Optimize profits and the resulting selling price is more competitive
3. Reduce financial risk and cash flow management
4. Evaluation material for subsidiaries/branches/divisions

- Tax Objective

1. Separate and focus each group member's key
2. Streamline group tax burden

For more detailed material can be seen and downloaded at the link below

https://drive.google.com/file/d/1yJsLH0TJ9W8a-qE-T9BkaWJXqRiACY6E/view?usp=drive_link