Implementation of Transfer Pricing and the Cost-Plus Method

Transfer pricing (TP) and cost-plus pricing are key strategies for multinational companies (MNCs) to allocate income and expenses between their subsidiaries in different countries, in a manner that complies with local tax laws. In Nigeria, like other countries, transfer pricing and cost-plus methods would need to comply with the local tax laws and regulations, which are enforced by the Federal Inland Revenue Service (FIRS).