Arm's length pricing codes and methodology

The hyperlinks below provide brief summaries of each method, although the list is not exhaustive. The methods may not be appropriate for determining an arm's length price under all circumstances. Other methods, which are not listed below, might also be appropriate.

Listed below are the arm's length pricing codes and methodologies.

Code 1 - Comparable uncontrolled pricing method

Code 2 - Resale price method

Code 3 - Cost-plus method

Code 4 - Profit split method

Code 5 - Transactional net margin method

Code 6 - Marginal costing

Code 7 - Cost-contribution arrangement

Code 8 - Apportionment of costs

Code 9 - Apportionment of income

Code 10 - Fixed percentage mark-up applied to costs

Code 11 - Fixed percentage of resale price

Code 12 - Other arm's length methods

    Last modified: 21 Feb 2012QC 25356