Transfer pricing is a crucial aspect of international taxation that deals with the pricing of transactions within multinational corporations involving the transfer of goods, services, or intellectual property across different subsidiaries or entities. The goal of transfer pricing is to establish fair and arm’s length prices for these transactions, as if they were occurring between unrelated, independent entities. This practice ensures that profits are appropriately distributed among different jurisdictions and prevents the manipulation of prices to shift profits to lower-tax jurisdictions, thereby avoiding potential tax liabilities. Many countries have specific regulations and guidelines to govern transfer pricing, and multinational corporations are required to document and justify the pricing mechanisms employed in their intra-group transactions. Effective transfer pricing strategies are essential for businesses to navigate the complexities of international taxation, comply with regulations, and maintain transparency in their financial dealings across borders.