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Transfer Pricing Glossary

Comprehensive definitions of transfer pricing terms, concepts, and methodologies. Your reference guide to TP terminology.

30 Terms
9 Categories
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Explore transfer pricing terminology organized by topic area

Benchmarking & PLIs

Profit Level Indicators, ranges, and comparability concepts

6 terms
Berry Ratio(BR)Interquartile Range(IQR)Net Cost Plus(NCP)Operating Margin(OM)Return on Assets(ROA)+1 more

Transfer Pricing Methods

CUP, RPM, CPM, TNMM, and Profit Split

3 terms
Comparable Profits Method(CPM)Comparable Uncontrolled Price Method(CUP)Transactional Net Margin Method(TNMM)

Core Concepts

Fundamental transfer pricing principles

8 terms
Arm's Length Principle(ALP)Arm's Length RangeComparable CompaniesControlled TransactionFunctional Analysis+3 more

Documentation

Master File, Local File, CbCR requirements

3 terms
Country-by-Country Report(CbCR)Local FileMaster File

Adjustments

Working capital, comparability, and other adjustments

2 terms
Country Risk AdjustmentWorking Capital Adjustment(WCA)

Process & Methodology

Screening, analysis, and workflow terms

3 terms
Comparability AnalysisManual ScreeningQuantitative Screening

Database & Search

Industry codes, independence indicators, and search tools

3 terms
Independence IndicatorNACE Code(NACE)SIC Code(SIC)

statistics

1 term
Median

methodology

1 term
Multi-Year Averaging

All Terms A–Z

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