Pricing Methods Transfer Taxpayers and parties who have special relationships. The application of this principle can take the form of adjusting. The price or profit report by the Taxpayer to be in line with the reasonable price or profit determin bas on the principle of proportionality. Document each step in determining a fair price. Document each step in determining a fair price or reasonable profit in accordance with the provisions of applicable tax laws. This documentation functions as proof that the Taxpayer has appli the Principles of Fairness and Business.
Practices in transactions Pricing Methods Transfer
Carri out with parties who have a Thailand Mobile Number List special relationship. This documentation is also useful for avoiding or resolving tax disputes that may arise due to transfer pricing. Also read Complete understanding of PPAP Provision for Productive Asset Losses. Types of Transfer pricing method There are several price transfer methods that companies can choose according to their nes and interests. Here are some methods that can be us Price comparison method between independent parties comparable uncontroll price methodCUP This method uses the price charg for transactions between parties who do not have a special relationship as a reference for determining the transfer price.
This method is consider
The most accurate and Kenya Telegram Number reliable if there are comparable transactions that are identical or very similar to the transactions affect by the special relationship. Example PT A sells good X to PT B at a price of IDR per unit. PT A also sells good X to PT C at a price of IDR per unit. PT B and PT C do not have a special relationship with PT A. Therefore a reasonable transfer price between PT A and PT B is IDR per unit the same as the market price. Resale price method resale price method RPM This method uses the gross profit margin obtain.