Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing Article 17
The Cost Plus Method set forth in the Regulations shall refer to the situation where the Arm's-length Price of the Controlled Transaction would be the price computed by multiplying the profit-seeking enterprise’s cost of purchasing from Unrelated Parties or producing the transferred assets by the rate of markup on cost rate, realized in comparable Uncontrolled Transactions. The formula is set forth below:Arm's-length price = Cost of purchasing from Unrelated Parties or actual production cost for self-manufactured products × (1 + Rate of Markup on cost realized in a comparable Uncontrolled Transaction)Rate of Markup on cost = Gross profit / Purchase cost or actual production cost for self-manufactured productsThe " rate of markup on cost realized in a comparable Uncontrolled Transaction" set forth in the preceding Paragraph shall refer to the rate of markup on cost earned by a profit-seeking enterprise undertaking Controlled Transactions from sales of Tangible Assets of the same category, either purchased from Unrelated Parties or self-manufactured to Unrelated Parties. If the “markup on cost rate realized in a comparable Uncontrolled Transaction” is not available, the markup on cost rate can be determined based on the markup on cost rate earned by other profit-seeking enterprises, with similar functions, risks and contractual terms, engaging in the sale of Tangible Assets of the same category, either purchased from Unrelated Parties or self-manufactured.In order to evaluate the applicability of the Cost Plus Method, the factors described in Paragraph 1 of Article 8 shall be considered, particularly the following factors that may affect the markup on cost rate:1. Function performed, such as manufacturing and process engineering skills or complexity of installation, and testing function.2. Risks assumed, such as market risk and foreign currency risks.3. Contractual terms, such as scope and terms of warranties provided, sales or purchase volume, credit terms and delivery terms.4. Whether or not Intangible Assets are involved in the transaction.5. Cost structures, such as the age of machinery and equipments.6. Business experience, such as whether the business is in a start-up or mature phase.7. Management efficiency.8. Consistency in accounting practices, such as the evaluation method of costs and inventory.If there are any differences of the factors prescribed in the preceding Paragraph between the profit-seeking enterprise and its Controlled Transactions and the comparables, appropriate adjustments are to be made to eliminate the impacts on the markup on cost rate with respect to the Uncontrolled Transaction. In the event that the impacts of such differences on the rate are unable to be eliminated by appropriate adjustments, other Arm's-length Methods as set forth hereunder shall apply.The foregoing 4 Paragraphs shall apply to the rendering of services or use of funds.
中文原文 營利事業所得稅不合常規移轉訂價查核準則第17條
本準則所定成本加價法，係以自非關係人購進之成本或自行製造之成本，加計依可比較未受控交易成本加價率計算之毛利後之金額，為受控交易之常規交易價格。
其計算公式如下：常規交易價格＝自未受控交易人購進之成本或自行製造之成本×（1＋可比較未受控交易成本加價率）成本加價率＝毛利／購進之成本或自行製造之成本前項所稱可比較未受控交易成本加價率，指從事受控交易之營利事業自非關係人購進或自行製造之同種類有形資產，銷售予非關係人之成本加價率；其無此成本加價率者，得以執行功能、承擔風險及契約條款類似之其他營利事業自非關係人購進或自行製造之同種類有形資產，銷售予非關係人之成本加價率為準。
評估成本加價法之適用性時，應考量第八條第一項規定之因素，尤應特別考量下列影響成本加價率之因素：
一、執行之功能，如製造、加工技術或安裝複雜程度、測試功能。
二、承擔之風險，如市場風險、匯兌風險。
三、契約條款，如保證範圍及條件、交易數量、信用條件及交貨條件。
四、交易內容是否包含無形資產。
五、成本結構，如機器、設備已使用之年數。
六、商業經驗，如處於開創期或成熟期。
七、管理效率。
八、會計處理之一致性，如成本及存貨評價方法。
營利事業及其所從事之受控交易與可比較對象間，如存在前項因素之差異，應就該等差異對成本加價率之影響進行合理之調整，其無法經由合理之調整以消除該等差異者，應依本準則規定採用其他適合之常規交易方法。
前四項規定於服務提供或資金使用之情形準用之。
其計算公式如下：常規交易價格＝自未受控交易人購進之成本或自行製造之成本×（1＋可比較未受控交易成本加價率）成本加價率＝毛利／購進之成本或自行製造之成本前項所稱可比較未受控交易成本加價率，指從事受控交易之營利事業自非關係人購進或自行製造之同種類有形資產，銷售予非關係人之成本加價率；其無此成本加價率者，得以執行功能、承擔風險及契約條款類似之其他營利事業自非關係人購進或自行製造之同種類有形資產，銷售予非關係人之成本加價率為準。
評估成本加價法之適用性時，應考量第八條第一項規定之因素，尤應特別考量下列影響成本加價率之因素：
一、執行之功能，如製造、加工技術或安裝複雜程度、測試功能。
二、承擔之風險，如市場風險、匯兌風險。
三、契約條款，如保證範圍及條件、交易數量、信用條件及交貨條件。
四、交易內容是否包含無形資產。
五、成本結構，如機器、設備已使用之年數。
六、商業經驗，如處於開創期或成熟期。
七、管理效率。
八、會計處理之一致性，如成本及存貨評價方法。
營利事業及其所從事之受控交易與可比較對象間，如存在前項因素之差異，應就該等差異對成本加價率之影響進行合理之調整，其無法經由合理之調整以消除該等差異者，應依本準則規定採用其他適合之常規交易方法。
前四項規定於服務提供或資金使用之情形準用之。