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ARTICLE · 26 SEPTEMBER 2023

Transfer Pricing In Nigeria

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Transfer pricing is the amounts charged during intercompany transactions between related companies. It is the price paid for goods or services that are transferred from one unit of an organization...

NigeriaTransport
Olalekan O. Elizabeth
Olalekan O. Elizabeth
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What is Transfer Pricing?

Transfer pricing is the amounts charged during intercompany transactions between related companies. It is the price paid for goods or services that are transferred from one unit of an organization to its other units in different states or countries.1

Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided and it is used to reduce the overall tax burden of the parent company.

Transfer Pricing Regulations apply only to transactions between connected taxable persons. Connected taxable persons generally include individuals and entities who share common control, management, or shareholders; or individuals and entities who participate directly or indirectly in the management, control, or capital of one another.

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