Phnom Penh (FN), Jul. 6 – Globalization has been triggering both opportunities and challenges especially foreign enterprises which have their businesses in Cambodia. Those enterprises usually have their presence in many countries.
Their resources such as labor, raw materials, intellectual properties and other tangible and intangible resources must be allocated among those countries. Some enterprises have their subsidiaries in Cambodia and these subsidiaries usually buy raw materials, semi-finished goods from their parent company and sell them back to their parent company. The practice of transfer pricing among these enterprises are a challenge especially in compliance with the Prakas on Transfer Pricing.
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