Article 12. Methods for determining the market price of the Transfer Pricing Law

Home / RLA / Article 12. Methods for determining the market price of the Transfer Pricing Law

1. In order to determine the market price, one of the following methods is used::

1) the comparable uncontrolled price method;

2) the "cost plus" method;

3) the method of the subsequent sale price;

4) Profit sharing method;

5) The net profit method.

2. If it is impossible to apply the method of comparable uncontrolled price, one of the methods specified in paragraph 1 of this article is used, which, taking into account the actual circumstances and conditions of the transaction, allows making the most reasonable conclusion about the compliance or inconsistency of the transaction price with market prices.

3. The choice of the appropriate method should be reasonable, where the participant of the transaction takes into account the following circumstances:

1) the choice of a method based on the nature of the transaction, determined by analyzing the functions performed by each participant in the transaction, taking into account the assets used and the expected risks;

2) availability of reliable information necessary for the application of the selected transfer pricing method;

3) the degree of comparability of controlled and uncontrolled transactions, including the reliability of adjustments to achieve comparability.

The Law of the Republic of Kazakhstan dated July 5, 2008 No. 67-IV.

President

Republic of Kazakhstan

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