Transfer Pricing in Turkey 
The Arms Lenght Principle
The arm’s length principle is defined as setting the same prices for the purchase or sale of goods or services between related parties as the prices that would be set on the same transactions carried out between unrelated enterprises.
Taxpayers should show that the prices or cost imposed in the goods or services purchase or sale between related parties are consistent with the arm’s length principle by applying one of the most suitable methods stated in the Code. They also have to take into account the facts and circumstances of the case.
The arm’s length price is the reference point for transfer pricing calculations.
