![](/template/termwiki/images/likesmall.jpg)
Home > Terms > Armenian (HY) > փոխանցման գին
փոխանցման գին
The prices assumed, for the purposes of calculating tax liability, to have been charged by one unit of a multinational company when selling to another (foreign) unit of the same firm. Firms spend a fortune on advisers to help them set their transfer prices so that they minimize their total tax bill. For instance, by charging low transfer prices from a unit based in a high-tax country that is selling to a unit in a low-tax country, a firm can record a low profit in the first country and a high profit in the second. In theory, however, transfer prices are supposed to be set according to the arm’s-length principle: that they should be the same as would be charged if the sale was to a business unconnected in any way to the selling firm. But when there is no genuinely independent market with which to compare transfer prices, what an arm’s length price would be can be a matter of great debate and an opportunity for firms that want to lower their tax bill.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
տպիչ
Հարակից սարքի տեսակ, որը համակարգչային թղթի վրա կամ այլ միջոցների տեղեկատվության կողմից արտադրում է բարդ կրկնօրինակներ:
Contributor
Featured blossaries
Dan Sotnikov
0
Terms
18
Blossaries
1
Followers
Interesting facts about Russia
![](/template/termwiki/images/likesmall.jpg)
![](https://accounts.termwiki.com/thumb1.php?f=artleo.com-26707-1380778401.jpg&width=304&height=180)
Rita Lapulevel
0
Terms
2
Blossaries
0
Followers
payment in foreign trade
![](/template/termwiki/images/likesmall.jpg)
![](https://accounts.termwiki.com/thumb1.php?f=10665de1-1383666980.jpg&width=304&height=180)
Browers Terms By Category
- World history(1480)
- Israeli history(1427)
- American history(1149)
- Medieval(467)
- Nazi Germany(442)
- Egyptian history(242)
History(6037) Terms
- Ballroom(285)
- Belly dance(108)
- Cheerleading(101)
- Choreography(79)
- Historical dance(53)
- African-American(50)
Dance(760) Terms
- Pesticides(2181)
- Organic fertilizers(10)
- Potassium fertilizers(8)
- Herbicides(5)
- Fungicides(1)
- Insecticides(1)
Agricultural chemicals(2207) Terms
- Human evolution(1831)
- Evolution(562)
- General archaeology(328)
- Archaeology tools(11)
- Artifacts(8)
- Dig sites(4)
Archaeology(2749) Terms
- Cosmetics(80)