Transfer pricing, between related parties.
Learn how prices are set for transactions between related businesses, from types and methods of transfer pricing to the arm's length principle, international taxation, and practical examples.
Course overview
Transfer pricing is the price charged for goods, services, or assets exchanged between related parties, such as a parent company and its subsidiary. This course explains how these prices are set and why tax authorities check them.
- Understand what transfer pricing is, and why it matters
- Identify the types of transfer pricing
- Learn the main transfer pricing methods
- Apply the arm's length principle
- Understand how related-party pricing affects profit and tax
- See how international transfer pricing is treated for taxation
- Understand the need for documentation and compliance
- Apply the methods through practical examples
Transfer Pricing lessons
Follow the lessons in order, or search and filter to jump to a subject.
Introduction to Transfer Pricing
Learn what transfer pricing is and why related parties use it.
Types of Transfer Pricing
Explore the different kinds of transfer pricing and where they apply.
Transfer Pricing Methods
Get an overview of the methods used to set transfer prices.
Arm's Length Principle
Understand why related-party prices should match market prices.
International Transfer Pricing and Taxation
See how cross-border pricing affects tax in different countries.
Practical Examples
Work through examples that apply transfer pricing methods.
Learn the methods, then apply the principle.
The lessons start with what transfer pricing is and its types, then cover the methods, the arm's length principle, and international taxation, and finish with examples.