TaxesHybrid accounting methods Credit, foreign tax Income subject to tax Tax agent Tax holiday Looking through
Primary adjustment
Let's delve into the concept of transfer pricing, a crucial aspect of international taxation. Simply put, transfer pricing refers to the pricing of goods or services between related companies in different tax jurisdictions. To ensure fairness and avoid tax evasion, tax administrations follow the arm's length principle which requires the transaction to be at market value. This may result in adjustments to a company's taxable profits, made by the first jurisdiction, to reflect a fair price for transactions involving associated enterprises in the second jurisdiction.
Related terms
Understand the meaning and definition of Hybrid accounting methods in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Credit, foreign tax in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Income subject to tax in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Tax agent in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Tax holiday in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Looking through in the context of stock market, trading, and investments.
MORE
Explore other categories
10 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
