7 Nov

FEDERAL INLAND REVENUE SERVICE(FIRS) PUBLISHES NEW TRANSFER PRICING (INCOME TAX) 2018 REGULATIONS

The arm’s length principle is articulated under the OECD Transfer Pricing Guidelines (OECD Guidelines) and in Nigeria regulations.

The "arm's-length principle" of transfer pricing states that the amount charged by one related party to another for a given product must be the same as if the parties were not related. An arm's-length price for a transaction is therefore what the price of that transaction would be on the open market. For commodities, determining the arm's-length price can sometimes be as simple a matter as looking up comparable pricing from non-related party transactions, but when dealing with proprietary goods and services or intangibles, arriving at an arm's length price can be a much more complicated matter.