In today’s volatile macroeconomic climate, heightened by high interest rates, intra-group loans have become focal points for tax authorities. The application of an arm’s length interest rate in pricing these transactions has thus gained paramount importance. Organizations typically employ four main approaches-Comparable Uncontrolled Price (CUP), Cost of Funds, Economic Modeling, and Safe Harbors-to determine arm’s length prices for related-party intercompany loans.
Copyright © 2024 Content Lead, All Rights Reserved.