These difficulties may

These difficulties may The joint profit from the transaction is IDR million. The relative contributions of PT A and PT B are determin bas on factors such as assets costs risks and functions perform by each party. For example PT As relative contribution is and PT Bs relative contribution is . So the joint profit allocation between PT A and PT B is IDR million and IDR million respectively. Transactional net profit method transactional net margin method TNMM This method uses the net profit margin obtain.

By one of the parties

Involv in the transaction bas on Philippines Mobile Number List certain profitability indicators for example return on sales return on assets return on costs as a reference for determining the transfer price. This method is suitable if the transaction involves routine or lowlevel functions the transaction is not tightly integrat or there are no reliable comparable transactions. Example PT A produces good X at a cost of IDR per unit. PT A sells good X to PT B at a price of IDR per unit. PT As net profit margin is Rp. Rp. . If the normal net profit margin for similar transactions in the market is then a reasonable transfer price between PT A and PT B is IDR per unit IDR.

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Reconciliation Method Components Philippines Phone Number List and Example Questions Obstacles to Implementing Transfer Pricing A transfer pricing strategy is a method or method us by companies to determine transfer prices that are in accordance with their business and tax interests. Obstaclesrisks fac when implementing a transfer pricing strategy include Difficulty finding identical comparable transactions Comparative transactions are transactions between parties who do not have a special relationship that can be us as a reference for determining the transfer price. be caus by lack of data availability differences in economic characteristics or differences in market conditions.

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