A key standard in international transfer pricing is:
A) Consistency.
B) Reliability.
C) The arm's-length standard.
D) Open marketability.
E) Translatability.

Question

Quizplus · Accepted Answer

The arm's-length standard is a key standard in international transfer pricing. It requires that transactions between related parties be conducted as if they were between unrelated parties under similar circumstances. This ensures that prices and terms of transactions are fair and reasonable, preventing the manipulation of profits and taxes between related parties. Consistency, reliability, open marketability, and translatability are important factors in transfer pricing but are not considered key standards.

A Key Standard in International Transfer Pricing Is