Choosing the Right Transfer Pricing Method: A Guide to the 5 OECD Methods

There are five OECD-recognized transfer pricing methods, grouped into two categories: Traditional Transaction Methods (the CUP method, Resale Price method, and Cost Plus method) and Transactional Profit Methods (TNMM and Profit Split). The right method depends on the nature of your transaction, the data available, and the risks each entity assumes. Choosing the wrong method…