Transfer pricing methods are techniques used by multinational companies to set prices for transactions between their subsidiaries in different countries. These methods ensure that profits are allocated fairly and comply with tax regulations in each jurisdiction. Common methods include the Comparable Uncontrolled Price method, the Cost Plus method, and the Transactional Net Margin method. Each method has its own approach to determining appropriate pricing. The Comparable Uncontrolled Price method compares prices charged in similar transactions between unrelated parties, while the Cost Plus method adds a markup to the costs incurred. The Transactional Net Margin method focuses on the overall profitability of a transaction, ensuring that it aligns with industry standards.