Target Margin arrangements

Target Margin is a frequently used transfer pricing model, and one which particularly lends itself to limited risk distribution arrangements. LCN co-founder Paul Sutton discusses the implications in detail.

• When Target Margin arrangements are most likely to be suitable
• The two main options when drafting the pricing clause of the ICA, and how to choose which one to use
• The importance of looking at the transaction from both a TP perspective and a legal one, and then reconciling the two
• Common mistakes, and how to avoid them

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