The Italian Revenue Agency recently published Circular No. 16/E of 24 May 2022, which clarifies the application of the arm's length principle in transfer pricing as per Ministerial Decree of 14 May 2018 and Law Decree No. 50 of 24 April 2017 as converted by Law No. 96 of 21 June 2017, which amended the definition of "normal value" for the purpose of the arm's length principle to bring it more in line with OECD principles. In particular, Circular No. 16/E addresses acceptable values within th…