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of <h1>Income and expenses from international transactions must align with arm's length price unless it reduces taxable income or increases losses.</h1> Income from international and specified domestic transactions must be computed based on the arm's length price. Expenses or interest related to these transactions should also be determined similarly. When associated enterprises agree on cost allocation or contributions for benefits, services, or facilities, these must align with the arm's length price. These provisions do not apply if such determinations reduce taxable income or increase losses based on the accounting entries for the relevant tax year.
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