The Supreme Administrative Court of Finland (Korkein hallinto-oikeus, KHO) gave its decision on 4 March 2013 in the case of KHO:2013:36. Details of the decision are summarized below. (a) Facts. A Oyj, a company resident in Finland, had a fully owned subsidiary in Estonia, B AS, which operated as a contract manufacturer for A Oyj. The remuneration A Oyj paid to B AS was determined by using the Transactional Net Margin Method and included a cost-plus margin of 7.95% as established in a transfer pricing (TP) analysis. The cost-plus margin took into consideration all the costs of the manufacturing activities...