Why operational transfer pricing profile over another tax profiles

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Accepted Answer

Operational transfer pricing profile is preferred over other tax profiles due to its ability to align with business operations and improve decision-making.

Operational transfer pricing allows for a more accurate reflection of costs and profits within different business units.
It helps in aligning transfer pricing policies with the overall business strategy.
Operational transfer pricing can lead to better decision-making by providing more relevant and timely information to management.
It can also help in reducing tax risks and compliance issues by ensuring transfer pricing policies are in line with business operations.
For example, a multinational company with multiple subsidiaries in different countries may benefit from using operational transfer pricing to allocate costs and profits effectively.

Why operational transfer pricing profile over another tax profiles

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