Question

What transactions are and are not subject to transfer pricing adjustments?

What transactions are and are not subject to transfer pricing adjustments?

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Answer #1

Virtually all transactions are subject to the US transfer pricing rules, including:

  • transfers of tangible property (Treasury Regulation Section 1.482-3);
  • transfers or use of intangible property (Section 1.482-4);
  • providing (or receiving) services (Section 1.482-9);
  • borrowing transactions (Section 1.482-2(a));
  • global trading in financial instruments (Proposed Treasury Regulation Section 1.482-8);
  • leasing transactions (Treasury Regulation Section 1.482-2(c); and
  • intangible property cost sharing arrangements (Section 1.482-7).
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