Written by Web Desk in Taxation New rules require transactions between associated persons to follow market-based pricing, with FBR outlining four methods for determining arm’s length results. ISLAMABAD: The Federal Board of Revenue (FBR) has prescribed rules for determining arm’s length transactions between associated persons for Tax Year 2027, covering the period from July 1, 2026, to June 30, 2027. The FBR issued the Income Tax Rules, 2002, updated up to September 15, 2026, outlining the requirements under Rule 23 for determining income arising from transactions between associates. Under the arm’s length standard, the Commissioner Inland Revenue will determine income based on the principle that transactions between associated persons should reflect conditions comparable to those agreed between independent parties. According to Rule 23, a controlled transaction meets the arm’s length standard if its outcome is consistent with what would…