A prior Advance Pricing Agreement remains persuasive for...

A prior Advance Pricing Agreement remains persuasive for transfer pricing benchmarking outside its covered years where the transaction and functions, assets and risks profile continue; departure requires material differences in those factors or economic circumstances. In software-distribution comparability, functional similarity takes priority over turnover, and turnover-based exclusion requires a demonstrated material effect on operating margins. Comparable companies with related-party transactions exceeding the applicable threshold cannot reliably serve as uncontrolled benchmarks without demonstrable adjustments. Under TNMM, no transfer pricing adjustment is warranted where the tested party's operating margin falls within the applicable arm's length range after the comparable set is finalised.