The Resource Interest rate benchmarking for transfer pricing purposes : a comparison between the loan and the bond approach

Interest rate benchmarking for transfer pricing purposes : a comparison between the loan and the bond approach

Label
Interest rate benchmarking for transfer pricing purposes : a comparison between the loan and the bond approach
Title
Interest rate benchmarking for transfer pricing purposes : a comparison between the loan and the bond approach
Creator
Subject
Language
  • eng
  • eng
Summary
This article analyses how an arm's length interest rate for an intercompany loan can be determined under the two most commonly accepted approaches; the loan approach and the bond approach. In this respect, it first provides some considerations as to performing a loan benchmarking study, followed by some of the main differences and theoretical advantages and disadvantages of the two approaches. As a second step, a case study is presented, for which an arm's length interest rate is determined under both approaches. The results of the two approaches are then discussed and compared. It is argued that the bond approach yields much more reliable results
Citation source
In: International transfer pricing journal. - Amsterdam. - Vol. 28 (2021), no. 4 ; p. 242-252
http://library.link/vocab/creatorName
  • Petrakos, T
  • Chand, V
  • Pletz, A
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • transfer pricing
  • arm's length principle
  • interest
  • benchmarking
  • intercompany loan
Label
Interest rate benchmarking for transfer pricing purposes : a comparison between the loan and the bond approach
Instantiates
Publication
Note
20210820
Other control number
itpj_2021_04_int_3.html
Label
Interest rate benchmarking for transfer pricing purposes : a comparison between the loan and the bond approach
Publication
Note
20210820
Other control number
itpj_2021_04_int_3.html

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