Cost-Plus Method for Transfer Pricing   The Cost-Plus method is suitable to used by manufacturing companies or those performing production functions and can also be used for service providers. The Cost Plus method determines the transfer

The Resale Price method uses a comparison of the gross profit margin between a company with the controlled transaction and the gross profit margin of the comparable uncontrolled transaction (another company that is an independent party). The

The Comparable Uncontrolled Price "CUP" method compares the price charged for goods or services transferred in a controlled transaction with the price charged for goods or services in an uncontrolled transaction between comparable independent parties in similar circumstances.

Certain taxpayers who conduct transactions with related parties (“transfer pricing”) are required to apply the arm’s length principle in transfer pricing, prepare and maintain transfer pricing documents (“TP Documentation”). In this article, KAP Agus Ubaidillah dan Rekan (TGS AU Partners) will discuss the method of determining transfer pricing in the context of applying the principles of business normality and fairness (arm’s length principle on the transaction).

Certain taxpayers who conduct transactions with related parties (“transfer pricing”) are required to apply the arm length principles in their business practice, prepare and maintain transfer pricing documents (“TP