Comparable Uncontrolled Price Method

About Comparable Uncontrolled Price Method:

Comparable Uncontrolled Price (CUP) Method is one of five methods for determining an arm's-length price for tangible property transfers. A transfer pricing method that compares the price for property or services transferred in a controlled transaction to the price charged for property or services transferred in a comparable uncontrolled transaction in comparable circumstances.The CUP method price is the price paid in a comparable uncontrolled sale, which the U.S. Internal Revenue Service considers the best criterion for pricing transfers of tangible property.

See Transfer Pricing in the United States Encyclopedia of Law and Transfer Pricing in the International Encyclopedia of Law.