Economic Themes (2011) 49 (3) 4, 397-414
Ksenija Denčić-Mihajlov, Marija Trajčevski
Abstract: Transfer pricing is considered important by both multinational companies and tax authorities. The majority of today’s trade is global and involves multinationals, giving cross-border transactions the potential to create transfer pricing issues and affect both the involved countries’ tax revenues and the TNC’s net income. The authors discuss transfer prices particularly in the context of their application in developing countries. Evidence is provided by examining transfer prices practice used by a multinational corporation operating in the Republic of Serbia.
Keywords: Multinational companies; transfer prices; tax; factors
TRANSFER PRICES IN THE THEORY AND PRACTICE OF MULTINATIONAL COMPANIES
Ksenija Denčić-Mihajlov, Marija Trajčevski
Abstract: Transfer pricing is considered important by both multinational companies and tax authorities. The majority of today’s trade is global and involves multinationals, giving cross-border transactions the potential to create transfer pricing issues and affect both the involved countries’ tax revenues and the TNC’s net income. The authors discuss transfer prices particularly in the context of their application in developing countries. Evidence is provided by examining transfer prices practice used by a multinational corporation operating in the Republic of Serbia.
Keywords: Multinational companies; transfer prices; tax; factors
