In selecting the most appropriate TP method, it is essential to consider the strengths and weaknesses of each method, the nature of the
transaction (such as distribution, services, manufacturing, intercompany loans or royalties), the availability of reliable data, and the
degree of comparability between the transactions.
“To apply any particular method, the key is the reliability and quality of data,” shared Adriana Calderon, Director, Transfer Pricing Solutions Asia, during a Tax Excellence Decoded (TED) session organised by the Singapore Institute of Accredited Tax Professionals (SIATP). “There must be reliable and comparable data to support the methodology.”