The IT Law Wiki

Transfer price

31,968pages on
this wiki

Definitions Edit

Commercial transactions Edit

A transfer price is the price, adopted for bookkeeping purposes, which is used to value transactions between affiliated enterprises integrated under the same management at artificially high or low levels in order to effect an unspecified income payment or capital transfer between those enterprises.

U.S. copyright law Edit

The transfer price of a digital audio recording device or a digital audio recording medium

(A) is, subject to subparagraph (B) —
(i) in the case of an imported product, the actual entered value at United States Customs (exclusive of any freight, insurance, and applicable duty), and
(ii) in the case of a domestic product, the manufacturer’s transfer price (FOB the manufacturer, and exclusive of any direct sales taxes or excise taxes incurred in connection with the sale); and

(B) shall, in a case in which the transferor and transferee are related entities or within a single entity, not be less than a reasonable arms-length price under the principles of the regulations adopted pursuant to section 482 of the Internal Revenue Code of 1986, or any successor provision to such section.”[1]


  1. 17 U.S.C. §1001(12).

Around Wikia's network

Random Wiki