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What is transfer pricing?

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Question added by Mugamba Thembo Yowasi , FINANCE OFFICER , Compuscan CRB Ltd
Date Posted: 2014/05/06
Marc Joseph Ferrer
by Marc Joseph Ferrer , Financial Analyst , Lanner Investments LLC

Transfer Pricing is the application of arm's-length pricing principle on transactions between two parties within the same group(related party transactions) in accordance with the rules set by the company and relevant local and international regulatory. Arm's-length principle of transfer pricing means the price being charged by one related party to another party is the same as if they were not related (price charged would be that in a competitive market)

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