What is the general rule for international transfer pricing advocated by the Organization for Economic Cooperation and Development (OECD)?

Question

Quizplus · Accepted Answer

The general rule for international transfer pricing advocated by the OECD is arm's length prices, which means the prices charged for goods or services between related companies should be the same as if they were being sold to an unrelated party under similar circumstances. This helps ensure fair competition and prevents companies from manipulating prices to shift profits to low-tax jurisdictions. Cost-based prices, negotiated prices, and discretionary prices are not considered best practices for transfer pricing.

What Is the General Rule for International Transfer Pricing Advocated