[INTM440030] INTM440030 – Transfer pricing: Types of transactions: transfer of trading stock
Transfer of stock: transfer pricing rules
In most trades, where different companies are involved in the chain of manufacture, distribution, retailing, etc, of product, stock is routinely sold from one company to another at each stage of manufacture or development. In some such cases normal accountancy practice may be that the transfers occur at the open market value. This value will also generally apply for tax purposes. Extending transfer pricing rules to domestic transactions is unlikely to have a significant impact in these cases.