What is a Trading Profit?

Transaction net profit method refers to the method of determining profit according to the level of net profit obtained by the parties to a transaction who have no related relationship through the same or similar business transactions. [1]

Transaction net profit method

Right!
Transaction net profit method refers to the method of determining profit according to the level of net profit obtained by the parties to a transaction who have no related relationship through the same or similar business transactions. [1]
Profitability indicators include return on assets, profitability on sales, full cost markup, and Bailey's ratio.
The transaction net profit method is generally applicable to related transactions such as purchase, sale, transfer, and use of tangible assets, transfer and use of intangible assets, and provision of labor services.
[ Note] Chapter 26 of "Implementation Measures for Special Tax Adjustments (Trial)"

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