If an enterprise makes or buys goods to sell, the cost of goods sold (COGS) can be deducted from net receipts. However, to determine COGS, the inventory at the beginning and end of each tax year must be valued. Consider the symbols:
Comparable Royalty Rates
Posted by
Julia Vasconcellos
Transfer pricing based on comparables is the foundation of the U.S. Treasury Regulations (“Treas. Reg.”) § 1.482 (published in 1994, as amended), the OCED Transfer Pricing Guidelines (1995, 2010), and several other country-specific transfer pricing regulations around the world.
In theory, the Treas. Reg. § 1.482 and the OECD Guidelines list five factors of comparability with a pretty nomenclature that read objective and reasonable. They are characteristics of property or services, functions performed, contractual terms, risks assumed, and economic conditions (geographic market).
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- Topics: Comparability Analysis
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