Arm’s Length Price

Business, Legal & Accounting Glossary

Definition: Arm’s Length Price


Arm’s Length Price


Full Definition of Arm’s Length Price


The price at which two unrelated and non-desperate parties would agree to a transaction. This is most often an issue in the case of companies with international operations whose international subsidiaries trade with each other. For such companies, there is often an incentive to reduce overall tax burden by manipulation of inter-company prices. Tax authorities want to insure that the inter-company price is equivalent to an arm’s length price, to prevent the loss of tax revenue.


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https://payrollheaven.com/define/arms-length-price/
Modern Language Association (MLA):
Arm’s Length Price. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 07, 2021 https://payrollheaven.com/define/arms-length-price/.
Chicago Manual of Style (CMS):
Arm’s Length Price. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/arms-length-price/ (accessed: December 07, 2021).
American Psychological Association (APA):
Arm’s Length Price. PayrollHeaven.com. Retrieved December 07, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/arms-length-price/

Definition Sources


Definitions for Arm’s Length Price are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.