TP Country Profile
United States Transfer Pricing Country Profile
Federal framework, pricing methods, documentation, reporting and dispute routes for taxable years 2025 and 2026, with a legal cut-off of 15 October 2026.
Edition 1.0
Legal cut-off: 15 October 2026
Taxable years 2025 and 2026
United States transfer pricing in brief
The United States applies the arm’s length standard through Internal Revenue Code section 482 and Treasury Regulations sections 1.482-1 to 1.482-9. There is no general value threshold and no OECD-style Local File or Master File filing. Contemporaneous documentation under section 6662 supports penalty protection. A US ultimate parent with group revenue of US$850 million or more in the preceding reporting period files country-by-country reporting on Form 8975.
United States transfer pricing at a glance
Topic | Headline position |
|---|---|
Law | Internal Revenue Code section 482 and Treasury Regulations sections 1.482-1 to 1.482-9, for taxable years 2025 and 2026 |
Standard | Arm’s length allocation between commonly controlled taxpayers, with no universal value threshold |
Methods | Methods set by the Treasury Regulations by type of transaction, including comparable profits, profit split and cost sharing |
Documentation | No general Local File; section 6662 contemporaneous documentation supports penalty protection |
Master File | No general OECD Master File preparation or filing duty identified |
Group reports | Form 8975 country-by-country report for a US ultimate parent with prior-period group revenue of US$850 million or more |
Foreign-owned entities | Form 5472 for specified foreign-owned US corporations and foreign corporations with a US business |
Disputes | IRS Advance Pricing and Mutual Agreement programme (APAs), treaty Mutual Agreement Procedure, IRS Appeals and the Tax Court |
What the full profile covers
The full 24-page profile includes:
Legal framework, control and coverage of section 482
Methods, benchmarking and comparability
Records, the penalty-protection study, Form 5472 and country-by-country reporting
Transaction-specific rules, permanent-establishment attribution, safe harbours and Amount B
Implementation, true-ups, adjustments and repatriation
Examinations, limitation periods, penalties and interest
Advance Pricing Agreements, Mutual Agreement Procedure and appeals
Recent developments and practical priorities
Download the full profile for the reporting thresholds, penalty tables, safe harbours and case law.
Frequently asked questions
What is transfer pricing in the United States?
US transfer pricing is the arm’s length rule in Internal Revenue Code section 482. It lets the IRS allocate income, deductions, credits or allowances between commonly controlled taxpayers to prevent evasion or clearly reflect income. Treasury Regulations sections 1.482-1 to 1.482-9 set the methods. There is no general minimum transaction value.
Does the United States require a Local File or Master File?
No. The United States has no general OECD-style Local File filing and no general Master File duty. Contemporaneous documentation under section 6662 is ordinarily voluntary, but it is the main protection against transfer pricing accuracy penalties and must be produced to the IRS within 30 days of a request in an examination.
Who must file country-by-country reporting in the United States?
A US ultimate parent whose group had annual revenue of US$850 million or more in the preceding reporting period files Form 8975 with Schedule A. It is filed with the ultimate parent’s US income tax return.
What is Form 5472?
Form 5472 is the information return for specified foreign-owned US corporations and foreign corporations with a US business. It is filed with the US income tax return, generally for each related party with a reportable transaction. The 25% vote-or-value ownership test belongs to Form 5472 and is not a condition for applying section 482.
What are the transfer pricing dispute options in the United States?
Taxpayers can seek an Advance Pricing Agreement from the IRS Advance Pricing and Mutual Agreement (APMA) programme under Rev. Proc. 2015-41, request treaty relief through the Mutual Agreement Procedure under Rev. Proc. 2015-40, or contest an adjustment through IRS Appeals and the Tax Court.
Where can I get the full United States transfer pricing profile?
Download the 24-page United States Transfer Pricing Country Profile (Edition 1.0, legal cut-off 15 October 2026). It covers thresholds, reporting, penalties, safe harbours and case law in detail.
Related services
Prepared by AventaaGlobal Advisors LLP. Edition 1.0, legal cut-off 15 October 2026. This summary is for general information and is not legal or tax advice.