tell me about transfer pricing

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Transfer pricing refers to the setting of prices for goods and services sold between related entities within an enterprise.

Transfer pricing is important for multinational companies to ensure that transactions between different parts of the organization are conducted at arm's length to avoid tax evasion.
It involves determining the prices at which goods, services, and intangible assets are transferred between related entities.
Transfer pricing regulations vary by country and are often subject to scrutiny by tax authorities to prevent profit shifting.
Common methods for determining transfer prices include comparable uncontrolled price, resale price, cost plus, and profit split methods.

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