Use of transactional net margin method

The transactional net margin method (‘TNMM’) and the profit-split method are described in the OECD Transfer Pricing Guidelines as the transactional profit methods (also called ‘other’ methods) for establishing the arm's length price. They concentrate on finding the arm's length net profit margin as opposed to the gross profit margin sought by the ‘traditional’ methods of CUP, resale minus and cost plus. The Guidelines consider TNMM at paragraphs 2.58 – 2.107.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.