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Transfer Pricing

Transfer Pricing Method: Cost Plus Method

Pasal 13 ayat (5) PMK -22/PMK.03/2020
    Metode biaya-plus (cost plus method) dilakukan dengan menambahkan laba kotor wajar pabrikan atau penyedia jasa terhadap harga pokok penjualan barang atau jasa, dan sesuai untuk karakteristik Transaksi yang Dipengaruhi Hubungan Istimewa dan karakteristik usaha para pihak yang bertransaksi, antara lain:
  1. Transaksi yang Dipengaruhi Hubungan Istimewa dilakukan dengan melibatkan pabrikan atau penyedia jasa yang membeli bahan baku atau faktor produksi lainnya dari pihak yang independen atau dari Pihak Afiliasi dengan harga yang telah memenuhi Prinsip Kewajaran dan Kelaziman Usaha; dan
  2. pabrikan atau penyedia jasa tidak menanggung risiko bisnis yang signifikan dan tidak memiliki kontribusi unik dan bernilai terhadap Transaksi yang Dipengaruhi Hubungan Istimewa.

Strengths
  • Fewer comparability adjustments needed compared with the CUP method to account for product differences, because focus is on functions performed. (Article 2.29 OECD TPG)
  • Product differences are less significant, i.e. are less likely to have material effect on profit margins than on price. (Article 2.30 OECD TPG)
  • Less product comparability required compared with CUP method.

Weaknesses
  • In practice, often difficult to determine appropriate cost basis
  • Costs incurred may not always be determinant of profit level
  • Not alwaysdiscernible link between level of costs incurred and a market price
  • Accounting consistency important for comparability purposes

Best applied to
  • (Contract) Manufacturer, in particular of semi-finished goods
  • (Contract) R&D
  • Service Provider

Cost Plus Method
CPM

Arm’s Length Principle = Costs + (Cost Plus Mark-up x Costs)
Cost Plus Mark-up = Sales Price – Costs
             Costs

Contoh
Manufacturing Costs = $ 100
Gross Profit Mark-up = 15%
Arm’s length price = $ 100 – ($100 x 15%)
         = $ 115

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