The transfer pricing rules target multinational companies that use the price-setting process in intercompany transactions to report low taxable income in high-tax countries and high taxable income in the low-tax countries.

Question

Quizplus · Accepted Answer

This is the definition of the transfer pricing rules. They aim to prevent multinational companies from manipulating their prices in intercompany transactions in order to minimize their tax liabilities in high-tax countries and maximize their tax savings in low-tax countries.

The Transfer Pricing Rules Target Multinational Companies That Use the Price-Setting