https://blog.comp-press.com/categories/transfer-pricing-methods/ Recent content in Transfer Pricing Methods on CompPress Blog — Transfer Pricing Insights Hugo en-us Tue, 07 Apr 2026 00:00:00 +0000 https://blog.comp-press.com/blog/tnmm-vs-cpm/ Tue, 07 Apr 2026 00:00:00 +0000 https://blog.comp-press.com/blog/tnmm-vs-cpm/ <h2 id="understanding-tnmm-and-cpm">Understanding TNMM and CPM</h2> <p>When performing a transfer pricing analysis, the <strong>Transactional Net Margin Method (TNMM)</strong> and the <strong>Comparable Profits Method (CPM)</strong> are by far the most frequently applied methods worldwide. If you work with transfer pricing across multiple jurisdictions, you&rsquo;ll encounter both — and understanding their similarities and differences is essential.</p> <p>At their core, both methods do the same thing: they compare the <strong>net profitability</strong> of the tested party in a controlled transaction against the net profitability of comparable independent companies. The difference lies in the regulatory framework, terminology, and certain application nuances.</p>