What is it that multinational companies should be aware of? What is Transfer Pricing? What is a related entity?What are the Kenyan Transfer Pricing Rules of 2006? What Transfer Pricing Methods are used in Kenya?
Transfer pricing is the pricing allocated to transactions such as goods, services and intangibles that are transferred between related entities.Prices are meant to efficiently allocate resources in the market whereas the role of transfer prices is to efficiently allocate resources within a company as they move from one related entity to another within the same corporate group.