Which factors are to be considered while selecting the most appropriate method for transfer pricing?

Transfer Pricing
1

Which factors are to be considered while selecting the most appropriate method for transfer pricing?

2

  • The contractual terms of the transaction or arrangement;

  • The characteristics of the transaction or arrangement;

  • The economic circumstances in which the transaction or arrangement is conducted;

  • The functions performed, assets employed, and risks assumed (‘FAR analysis’) by the Related Parties entering the transaction or arrangement;

  • The business strategies employed by the related parties entering the transaction or arrangement.