Pricing and

1
Transfer Pricing
• Transfer Pricing Overview
• Ex-post versus Ex-ante
• Penerapan Prinsip Kewajaran dan Kelaziman Usaha
 Dasar Hukum 2

Pasal 18 ayat (4) UU PPh dan Pasal 2 ayat (2) UU PPN

• Hubungan Istimewa

Pasal 18 ayat (3) UU PPh

• Kewenangan Dirjend Pajak

PER-32/PJ/2011
• Pedoman Penerapan Prinsip Kewajaran dan Kelaziman Usaha

PER-22/PJ/2013
• Pemeriksaan Transfer Pricing

SE-50/PJ/2013
• Petunjukan Teknis Pemeriksaan Transfer Pricing

PMK-213/PMK.03/2016
• Jenis Dokumen dan atau Informasi Tambahan Yang Wajib Pajak Disimpan Oleh Wajib Pajak Yang Melakukan Transaksi Dengan
Para Pihak Yang Mempunyai Hubungan Istimewa dan Tata Cara Pengelolaannya
Pedoman Internasional 3

OECD Transfer
Pricing Guidelines

UN Transfer
Pricing Manual
OECD Base Erosion and Profit Shifting 4
Hubungan Istimewa 5

• Hubungan Istimewa adalah hubungan antara Wajib Pajak dengan

pihak lain sebagaimana dimaksud dalam Pasal 18 ayat (4) Undang-
Undang PPh atau Pasal 2 ayat (2) Undang-Undang PPN.
Prinsip Kewajaran dan Kelaziman Usaha 6

• Prinsip Kewajaran dan Kelaziman Usaha (Arm's length

principle/ALP) merupakan prinsip yang mengatur bahwa apabila
kondisi dalam transaksi yang dilakukan antara pihak-pihak
yang mempunyai Hubungan Istimewa sama atau sebanding dengan
kondisi dalam transaksi yang dilakukan antara pihak yang tidak
mempunyai Hubungan Istimewa yang menjadi pembanding, maka
harga atau laba dalam transaksi yang dilakukan antara pihak-pihak
yang mempunyai Hubungan Istimewa harus sama dengan atau
berada dalam rentang harga atau laba dalam transaksi yang
dilakukan antara pihak yang tidak mempunyai Hubungan Istimewa
yang menjadi pembanding.
Harga Wajar atau Laba Wajar 7

• Harga Wajar atau Laba Wajar adalah harga atau laba yang terjadi
dalam transaksi yang dilakukan antara pihak-pihak yang tidak
mempunyai Hubungan Istimewa dalam kondisi yang sebanding,
atau harga atau laba yang ditentukan sebagai harga atau laba yang
memenuhi Prinsip Kewajaran dan Kelaziman Usaha
Kesebandingan (Comparability) 8

• Kesebandingan: kondisi transaksi afiliasi sebanding dengan kondisi

transaksi independen
1. The contractual terms of the transaction.
2. The functions performed by each of the parties to the transaction, taking
into account assets used and risks assumed, including how those functions
relate to the wider generation of value by the MNE group to which the
parties belong, the circumstances surrounding the transaction, and
industry practices.
3. The characteristics of the property transferred or services provided.
4. The economic circumstances of the parties and of the market in which the
parties operate.
5. The business strategies pursued by the parties. (OECD, Action 8 – 10)
Analisis Kesebandingan (Comparability
Analysis) 9

• Analisis Kesebandingan adalah analisis yang dilakukan oleh Wajib

Pajak atau Direktorat Jenderal Pajak atas kondisi dalam transaksi
yang dilakukan antara Wajib Pajak dengan pihak yang mempunyai
Hubungan Istimewa untuk diperbandingkan dengan kondisi dalam
transaksi yang dilakukan antara pihak-pihak yang tidak mempunyai
Hubungan Istimewa, dan melakukan identifikasi atas perbedaan
kondisi dalam kedua jenis transaksi dimaksud.
Transfer Pricing Method 10

Comparable Transactional Transactional

Uncontrolled Resale Price Cost Plus Net Margin Profit Split
Price Method Method

gross gross operating operating

price
profit profit profit profit
Pemilihan Metode Transfer Pricing 11

Kondisi transaksi

Ketersediaan pembanding

Kekuatan dan kelemahan tiap metode transfer pricing

Transfer Pricing Review (1) 12

Lampiran
Khusus 3A SPT
PPh Tahunan

Audited
Transfer Pricing
Financial
Documentation
Statements

Related
Party
Transaction
Transfer Pricing Review (2) 13

Amount of
transaction

Related Type of
Party transaction

Related
Party
Transaction
Arm’s Length Principle Approach 14
• Ex-post (outcome-testing approach)
• Ex-ante (price-setting approach)
Arm’s Length Approach 15

Arm's length Arm's length

price setting outcome-testing
approach approach
Arm’s Length Principle

16
Ex-Post Definition 17

• Ex-post is another word for actual returns and is Latin for "after
the fact." The use of historical returns has customarily been the
most well-known approach to forecast the probability of incurring
a loss on an investment on any given day. Ex-post is the opposite
of ex-ante, which means "before the event."

Read more: Ex-Post Definition |

Investopedia http://www.investopedia.com/terms/e/expost.asp#i
xzz4ZNpoFaBd
Ex-Ante Definition 18

• Ex-ante, derived from the Latin for "before the event," is a term
that refers to future events, such as future returns or prospects of
a company. Ex-ante analysis helps to give an idea of future
movements in price or the future impact of a newly implemented
policy.
• An example of ex-ante analysis is when an investment
company values a stock ex ante and then compares the predicted
results to the actual movement of the stock's price.
Business Process 19

Input Process Output/Outcome

• Price Setting (Ex- • Business • Testing Price (Ex-
ante) Transactions post)
Ex-post Approach and ALP 20

“…In particular, the parties will not know about and may also have
significant difficulties in predicting how subsequent developments
will affect the attractiveness of a particular transaction structure or
price. An ex-post approach would therefore bear no sound
relationship to the situation facing unrelated parties negotiating a
contract….”
(Bullen, 2011)
Ex-ante and Ex-post 21

“In the absence of evidence of rights and obligations in a

comparable situation, it may be necessary to determine what rights
and obligations would have been put in place had the two parties
transacted with each other at arm’s length. In making such an
evaluation, care must be taken to avoid the use of hindsight (see
paragraph 3.74).”

(Paragraph 9.56, OECD TPG)

Ex-post Flow Process 22

Price Setting

Affiliated
Parties
Transactions

• Applying
Outcome ALP :
Result?
Ex-ante Flow Process 23

Price Setting

• Applying
Simulation ALP =
Result?

Affiliated
Parties
Transactions
The conditions for a transaction at the same
time 24

“In certain cases, the arm’s length principle may result in an

administrative burden for both the taxpayer and the tax
administrations of evaluating significant numbers and types of cross-
border transactions. Although associated enterprises normally
establish the conditions for a transaction at the time it is
undertaken, at some point the enterprises may be required to
demonstrate that these are consistent with the arm’s length
principle….”

(Paragraph 1.12, OECD TPG)

Information at the time of the determination 25

“Each taxpayer should endeavour to determine transfer pricing for tax purposes in
accordance with the arm’s length principle, based upon information reasonably
available at the time of the determination. Thus, a taxpayer ordinarily should give
consideration to whether its transfer pricing is appropriate for tax purposes
before the pricing is established. For example, it would be reasonable for a
taxpayer to have made a determination regarding whether comparable data from
uncontrolled transactions are available. The taxpayer also could be expected to
examine, based on information reasonably available, whether the conditions used
to establish transfer pricing in prior years have changed, if those conditions are to
be used to determine transfer pricing for the current year.”

(Paragraph 5.8, OECD TPG)

Transfer Pricing Documentation 26

It would be expected that the application of these principles will

require the taxpayer to prepare or refer to written materials that
could serve as documentation of the efforts undertaken to comply
with the arm’s length principle, including the information on which
the transfer pricing was based, the factors taken into account, and
the method selected.

(Paragraph 5.9, OECD TPG)

 Price 27
• Definition
• Pricing factors
• Pricing terms
• Pricing methods
Price (1) 28

• the quantity of one thing that is exchanged or demanded in barter or

sale for another
• the amount of money given or set as consideration for the sale of a
specified thing
• the cost at which something is obtained
• the amount of money that you pay for something or that something costs
• the thing that is lost, damaged, or given up in order to get or do
something
• the amount of money needed to persuade someone to do something

Source : https://www.merriam-webster.com/dictionary/price
Price (2) 29

• A value that will purchase a finite quantity, weight, or other

measure of a good or service.
As the consideration given in exchange for transfer of ownership,
price forms the essential basis of commercial transactions. It may
be fixed by a contract, left to be determined by an agreed upon
formula at a future date, or discovered or negotiated during the
course of dealings between the parties involved.

Read more:
http://www.businessdictionary.com/definition/price.html
Pricing 30

• Method adopted by a firm to set its selling price. It usually

depends on the firm's average costs, and on the customer's
perceived value of the product in comparison to his or her
perceived value of the competing products. Different pricing
methods place varying degree of emphasis on selection,
estimation, and evaluation of costs, comparative analysis, and
market situation. See also pricing strategy.

Read more:
http://www.businessdictionary.com/definition/pricing.html
Price : Determined by 31

In commerce, price is determined by what :

1. a buyer is willing to pay,
2. a seller is willing to accept, and
3. the competition is allowing to be charged.
With product, promotion, and place of marketing mix, it is one of
the business variables over which organizations can exercise some
degree of control.

Read more:
http://www.businessdictionary.com/definition/price.html
Pricing Terms 32

Rate

Duties Fee

Premium
Tariff and
Discount

Price
Admission Rent

Toll Tuition

Fare
Definisi : Harga, Biaya, dan Nilai (1) 33

Sesuai dengan Konsep dan Prinsip Umum Penilaian (KPUP) – Standar

Penilaian Indonesia Edisi VI
• 4.2 Harga adalah sejumlah uang yang diminta, ditawarkan atau
dibayarkan untuk suatu aset. Karena kemampuan keuangan,
motivasi atau kepentingan khusus dari pembeli atau penjual,
harga yang dibayarkan mungkin berbeda dengan nilai dari aset
tersebut berdasarkan anggapan pihak lain.
Definisi : Harga, Biaya, dan Nilai (2) 34

• 4.3 Biaya adalah sejumlah uang yang diperlukan untuk

memperoleh atau menciptakan suatu aset. Ketika aset telah
diperoleh atau diciptakan, biaya merupakan suatu fakta. Harga
berhubungan dengan biaya, karena harga yang dibayar untuk suatu
aset menjadi biaya bagi pembeli.
• 4.4 Nilai adalah suatu opini dari manfaat ekonomi atas
kepemilikan aset, atau harga yang paling mungkin dibayarkan
untuk suatu aset dalam pertukaran, sehinga nilai bukan
merupakan fakta. Aset diartikan juga sebagai barang dan jasa.
Ways to Change Price 35

Quantity of
Quantity of Quality of goods
goods or
money or services
services

The time and

The acceptable
Premiums and place of
form of
discounts transfer of
payment
ownership
Pricing Options 36

Market-
based

Dual Price
Transfer Cost-based
Pricing

Negotiated
Market-Based Prices 37
• Market price refers to a price in an intermediate market between independent buyers and
sellers.
• When there is a competitive external market for the transferred product, market prices work
well as transfer prices.
• When transferred goods are recorded at market prices, divisional performance is more likely
to represent the real economic contribution of the division to total company profits.
• If the goods can not be bought from a division within the company, the intermediate product
would have to be purchased at the current market price from the outside market.
• Divisional profits are therefore likely to be similar to the profits that would be calculated if
the divisions were separate organisations.
• Consequently, divisional profitability can be compared directly with the profitability of-similar
companies operating in the same type of business. Managers of both buying and selling
divisions are indifferent between trading with each other or with outsiders. No division can
benefit at the expense of another division. In the market price situation, top management will
not be tempted to intervene.

http://www.yourarticlelibrary.com/accounting/methods-of-transfer-pricing-4-methods/52954/
Cost-Based Prices (1) 38

• When external markets do not exist or are not available to the company
or when information about external market prices is not readily
available, companies may decide to use some forms of cost-based
transfer pricing system.
• Cost-based transfer prices may be in different forms such as variable
cost, actual full cost, full cost plus profit margin, standard full cost.

http://www.yourarticlelibrary.com/accounting/methods-of-transfer-
pricing-4-methods/52954/
http://denniscaplan.fatcow.com/Chapter23.htm
Cost-Based Prices (2) 39

• At its simplest, cost-based pricing is based on our assessment of

the total costs we incur in manufacturing a product or delivering a
service.
• This method is the most popular method of pricing in use today,
and in our experience is the default pricing methodology adopted
by most companies.
• It is usually applied in conjunction with competitive-based pricing.

(Macdivitt and Wilkinson, 2012)

Common Variants of Cost-Based Pricing 40

Full Cost Recovery Contribution-

Target ROI Pricing
Pricing (FCRP) Based Pricing
• Recovering the • Recovering the • Based on
full costs of a investment costs maximizing the
product or over a period of contribution per
service several years unit of a single
product or
service
Negotiated Prices 41
• Negotiated prices are generally preferred as a middle solution between
market prices and cost-based prices.
• Under negotiated prices, the managers involved act much the same as
the managers of independent companies.
• Negotiation strategies may be similar to those employed when trading
with outside markets.
• If both divisions are free to deal either with each other or in the
external market, the negotiated price will likely be close to the external
market price.
• If all of a selling division’s output can not be sold in the external market
(that is, a portion must be sold to the buying division), the negotiated
price will likely be less than the market price and the total margin will
be shared by the divisions.
http://www.yourarticlelibrary.com/accounting/methods-of-transfer-
pricing-4-methods/52954/
Dual Prices 42

• Under dual prices of transfer pricing, selling division sells the transferred goods at a
(i) market or negotiated market price or (ii) cost plus some profit margin. But the
transfer price for the buying division is a cost-based amount (preferably the variable
costs of the selling division). The difference in transfer prices for the two divisions
could be accounted for by special centralised account. This system would preserve
cost data for subsequent buyer departments, and would encourage internal
transfers by providing a profit on such transfers for the selling divisions.
• Dual prices give motivation and incentive to selling divisions as goods are
transferred at market price and this arrangement provides a minimal cost to the
buying division as well. Market price can be considered as the most appropriate
base for the selling division. Thus dual pricing-system has the function of motivating
both the selling division and buying division to make decisions that are consistent
with the overall goals of decentralisation—goal congruence, accurate performance
measurement, autonomy, adequate motivation to divisional manager.
http://www.yourarticlelibrary.com/accounting/methods-of-transfer-pricing-4-
methods/52954/
http://www.personal.psu.edu/sjh11/BA521/NEW/Class08/TransferPricing.pdf
Competition-Based Pricing 43

• Compare the features and specifications of our product with those

of the competition and make a judgement about how the product
should be positioned and priced.
Competition-Based Pricing 44

Going-Rate Pricing
• Competitor Parity Pricing
• Recognizes that when a (rational) customer is deciding on a purchase, he will work systematically
through a search process in which he will gauge price, performance, product specification,
supplier reputation, support, brand, and other factors relevant to him.
• Products and services are priced at or around the average price for similar items in the market.

Competitive Bidding
• Contract Bidding
• A pricing approach used by buyers to solicit offers typically to undertake contract work or to
deliver products or services over an extended period of time.
Predatory Pricing
• Destroyer Pricing
• Used as an attempt to eliminate competition.
• It involves lowering prices to the point where competition is forced to withdraw.
Value-Based Pricing : Value Triad 45

Revnue
Gains

Value to
the
Customer

Emotional Cost
Contribution Reductions
Value Triad : Revenue Gains (RGs) 46

• These are the improvements in revenue that accrue to a customer

as the result of the purchase and use of your products and
services.
• Outcomes such a superior yield from manufacturing processes or
service-delivery initiatives or greater revenue streams perhaps
through the ability to create and sell a better and more
competitive service, the ability to charge a premium price for
products and services in turn, or the ability to increase market
share all generate revenue gains.
Value Triad : Cost Reductions (CRs) 47

• These involve our ability to help a customer reduce costs through

the use of our products or services.
• This is not merely about reducing the price of purchased goods
and services.
• CRs must be achieved without compromising subsequent value
delivery to your customer.
Value Triad : Emotional Contribution (EC) 48

• The arises from many sources and is in general linked closely to

the “feel good factor” – for example, reduction of “hassle,” peace
of mind, increased confidence, greater safety, pleasing to the eye,
personal gain, trust, self-esteem, absence of risk, and so on.
• This makes it very difficult to create a universally acceptable,
objectively verifiable quantitative estimate of emotional impact.

(Macdivitt and Wilkinson, 2012)

Environmental Factors
(Jensen, 2013) 49

The Economy

Technological
Competitors
change

Pricing

Government
Social trends regulation and
legal
Pricing Positioning
(Jensen, 2013) 50

• Lower than
Penetration
Pricing your
competitors

• Higher than
Skimming
Pricing your
competitors

• Roughly the
Competitive same as
Pricing
your
competitors
Segmentation 51
• Allocation
• Product
• Function
• Driver
Cost Classification

• The separation of expenses into different

categories. For example, cost classification
in economics might involve categories of
fixed, variable, opportunity, production
and sunk costs. On the other hand,
accounting costs can be classified as either
direct or indirect for a business.

Read more:
http://www.businessdictionary.com/definit
ion/cost-classification.html
• Product costs are costs assigned to the
manufacture of products and recognized
for financial reporting when sold. They
include direct materials, direct labor,
factory wages, factory depreciation, etc.
• Period costs are on the other hand are all
costs other than product costs. They
include marketing costs and administrative
costs, etc.

52
Type of Cost 53

Direct
Cost
Cost Traceable
Common
Cost Non-
Traceable
Seven General Types of Segmentation Tactics
(Nagle and Holden, 2002) 54

Buyer
Identification

Tie-ins and Purchase

Metering Location

Segmentation
Tactics

Product Time of
Bundling Purchase

Product
Design
Segmentation 55

Division/Unit/Entity Function

Product Location

Segmentation
Segmented by Product Lines 56
Segmented by Division 57
Segmented by Location 58
Segmentation : Transfer Pricing
(PMK-213) 59

Manufacturer Distributor Service

Toll Agent Share

Contract Commissionaire Contract

Licensed Buy-Sell Sophisticated

Fully fledged Fully fledged

 Price Setting 60
• Ex-ante approach
• Implementation
• Applying arm’s length principle
• Critical points
Strategic Pricing 61

”Pricing and should play an integrative role in business strategy.

Pricing is not only part of marketing, but also part of finance and
competitive strategy. Done correctly, pricing is the interface
between those activities – the glue that holds them together.
Superior profitability is achievable only by finding and exploiting
synergies between customer needs and seller capabilities –
synergies that produce high value for both parties. Finding and
exploiting such synergies is what we call strategic pricing.”
(Nagle and Holden, 2002)
Degrees of Conversion in Firms 62
Pasal 9 ayat (3) PMK 213 : Segmentasi 63

• Dalam hal Wajib Pajak mempunyai lebih dari satu kegiatan usaha
dengan karakterisasi usaha yang berbeda, dokumen lokal
sebagaimana dimaksud pada ayat (1) harus disajikan secara
tersegmentasi sesuai dengan karakterisasi usaha yang dimiliki.
Price Setting Point toward Transaction Point 64
• Budgeting
• Segmenting
Price
Setting • Pricing

• Dealing/Negotiation
• Revising Price
Negotiation • Agreement

•Monitoring
•Evaluating
Transaction •Revising

•Evaluating
•Historical data and information
Outcome
Testing •Baseline for next year price setting
Price Setting : Traditional Approach and TP 65

Price Setting Price

Components/Formula Cost Mark-up

Arm’s Length Comparable

Principle Type of Cost Cost Driver
Companies
Transfer Pricing Method : Price and Cost
Perspective 66

TNMM/Profit
CUP Cost Plus Resale Price
Split

Market-based Product Cost Direct Cost Product Cost

Inventoriable Period Cost

Competition- Cost: Direct
based Material, Direct Distribution
Labor, FOH Cost
Comparable Uncontrolled Price (CUP) 67

“Unfortunately, many corporations do not use market-based transfer

pricing, not because they do not want to, but because there are no
market prices available. This happens when the products being
transferred do not exactly match those sold on the market, or if
they are intermediate-level products that have not yet been
converted into final products, so there is no market price available
for them….”

(Bragg, 2007)
CUP : Issues 68

• Internal versus external

• Nature of transaction
• Market data and information
• Timing
• Agreement : contractual terms
Price Setting : CUP 69

Write contractual
Monitor, evaluate,
Determine market terms in agreement
compare related
price (CUP) based on market
party prices to CUP
data and information
Cost Plus / Resale Price 70

• Internal versus External Comparable

• Attributable cost : product cost / direct cost
• Segmentation issues
• Functional analysis (functions, assets, and risks)
Price Setting : Cost Plus / Resale Price 71

Put the ALP's mark-

Search comparable up or margin
Determine Product mark-up (CP) / Transform into
Cost / Direct Cost (relative value) into charges/rates/prices
margin (RP)
budget process
TNMM : Profit Level Indicator (PLI) 72

PLI

Indirect Direct

Return on
Return on
Capital Return on Sales Full Cost Mark
Operating Assets
Employed (ROS) Up (FCMU)
(ROA)
(ROCE)
Price Setting : TNMM - Direct PLI 73

Put the ALP's mark-up

Search comparable
Determine TNMM PLI : or margin (relative Transform into
mark-up/margin
ROS/FCMU value) into budget charges/rates/prices
(relative value)
process
Price Setting : TNMM - Indirect PLI 74

Calculate the ALP's

Search comparable mark-up or margin
Determine TNMM PLI : Transform into
mark-up/margin (relative value) into
ROS/FCMU charges/rates/prices
(relative value) absolute value and
put in budget process
Searching Comparable Margin / Mark-up 75

Single Year
(20X4)
Year
Multiple Years
(20X4, 20X3,
20X2)

FY 20X6
Availability
Financial Data
financial data

Economic
Different
Circumstances
TP Life Cycle 76

Historical
data and
information

Outcome Price
testing (ex- Setting (ex-
post) ante)

Monitoring Supporting
Process Documents
Critical Points 77

• Segmentation
• Cost allocation
• Cost driver
• Pricing Formula
• Agreement
• Budget vs Actual
• Comparable margin / mark-up:
• Timing / year(s) comparison
• Availability of financial data
• Economic circumstances
Ex-ante : Years Comparison 78

”Data from years following the year of the transaction may also be
relevant to the analysis of transfer prices, but care must be taken
to avoid the use of hindsight. For example, data from later years
may be useful in comparing product life cycles of controlled and
uncontrolled transactions for the purpose of determining whether
the uncontrolled transaction is an appropriate comparable to use in
applying a particular method. Subsequent conduct by the parties
will also be relevant in ascertaining the actual terms and conditions
that operate between the parties.”

(Paragraph 3.74, OECD TPG)

Ex-ante : Business Strategy 79
“An additional consideration is whether there is a plausible expectation that following
the business strategy will produce a return sufficient to justify its costs within a
period of time that would be acceptable in an arm's length arrangement. It is
recognised that a business strategy such as market penetration may fail, and the
failure does not of itself allow the strategy to be ignored for transfer pricing
purposes. However, if such an expected outcome was implausible at the time of the
transaction, or if the business strategy is unsuccessful but nonetheless is continued
beyond what an independent enterprise would accept, the arm’s length nature of the
business strategy may be doubtful. In determining what period of time an
independent enterprise would accept, tax administrations may wish to consider
evidence of the commercial strategies evident in the country in which the business
strategy is being pursued. In the end, however, the most important consideration is
whether the strategy in question could plausibly be expected to prove profitable
within the foreseeable future (while recognising that the strategy might fail), and that
a party operating at arm's length would have been prepared to sacrifice profitability
for a similar period under such economic circumstances and competitive conditions.”

(Paragraph 1.63, OECD TPG)

Ex-ante : Transactional Profit Split Method (1) 80

“When a tax administration examines the application of the method used ex ante
to evaluate whether the method has reliably approximated arm’s length transfer
pricing, it is critical for the tax administration to acknowledge that the taxpayer
could not have known what the actual profit experience of the business activity
would be at the time that the conditions of the controlled transaction were
established. Without such an acknowledgement, the application of the
transactional profit split method could penalize or reward a taxpayer by focusing
on circumstances that the taxpayer could not reasonably have foreseen. Such an
application would be contrary to the arm’s length principle, because independent
enterprises in similar circumstances could only have relied upon projections and
could not have known the actual profit experience. See also paragraph 3.74.”

(Paragraph 2.128, OECD TPG)

Ex-ante : Transactional Profit Split Method (2) 81

“Where the associated enterprises have determined the conditions in their

controlled transactions on a basis other than the transactional profit split
method, the tax administration would evaluate such conditions on the
basis of the actual profit experience of the enterprise. However, care
would need to be exercised to ensure that the application of a
transactional profit split method is performed in a context that is similar
to what the associated enterprises would have experienced, i.e. on the
basis of information known or reasonably foreseeable by the associated
enterprises at the time the transactions were entered into, in order to
avoid the use of hindsight. See paragraphs 2.11 and 3.74.”

(Paragraph 2.130, OECD TPG)

Low Value-Adding Activities 82
• Safe Harbour Margin / Mark-up
Safe Harbour Margin/ Mark-up (1) 83
Safe Harbour Margin/ Mark-up (2) 84
Terima kasih atas perhatiannya

“transfer pricing is not an exact science”

85