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NEWS & ANALYSIS
CUP Method: The Often Overlooked First Choice
The Comparable Uncontrolled Price (CUP) method is often overlooked in favour of profit-based approaches like TNMM or CPM. Yet, when reliable comparable data exists, the CUP method is typically the preferred method under OECD Guidelines, IRS rules, and local regulations worldwide. For middle-market and entrepreneurial companies, correctly applying CUP can reduce risk, support pricing decisions, and improve audit defensibility.
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