SOPKO Valeriya,
Doctor of Economics, professor
The head of Chair of Accounting and Taxation of Kyiv National University of Trade and Economics
MELNYCHUK Oksana,
Ph. D. in Economics, Senior teacher of chair of accounting at
Vinnytsa Institute of Trade and Economics of Kyiv National University of Trade and Economics
TRANSFER PRICING IN INTERNATIONAL TRANSACTIONS
Background. The nature of transfer pricing in foreign economic activities have been examined in the article, the purpose of monitoring of the usual prices have been defined, areas of activity that are subject to control have been described. The fourth edition of the law on transfer pricing operates today in Ukraine by which made a rather dramatic changes in the procedure of determining transfer prices.
The analysis of recent researches and publications. Many foreign and domestic scientists paid attention to the issue of transfer pricing in their writings, considering it in the sphere of foreign economic activity at the level of inter-economic relations of legally separated business entities, which are associated by relations of control. However, the questions of the essence of Transfer Pricing as a mechanism of tax control over taxes paying and analysis of categories of controlled business transactions, methods of determining prices in controlled transactions and aspects of tax control of Transfer Pricing are still not sufficiently studied.
The aim of the research Transfer Pricing in terms of application, consider new legal acts which regulate its mechanism.
Materials and methods. Legal acts of domestic legislation regulations, scientific publications of domestic and foreign authors regarding these issues served as research materials. Such methods as logical, comparison and observation methods were used during the scientific research.
Results. Changes in legal base for the regulation of mechanism of transfer-pricing requirements have been worked in the article and also the new versions of the procedure for recognition of economic operation under control in relationships with related party – non-resident have been considered. The question of concerning of tax differences of income tax in the case of making controlled transactions with non-residents to purchase goods and services have been considered. The example of buying of inventory holdings of non-residents – unrelated persons which registered in the state referred to in paragraphs. 39.2.1.2 of Tax Code of Ukraine have been considered. Outlined cases where tax differences may not apply. Norms of Tax Code of Ukraine have been analyzed to prove impartiality of prices in uncontrolled transactions.
Conclusion. Problems of resolution of transfer pricing have been identified. In particular, rules clearly define the calculation of the profitability have been proposed, grouping operations, application of adjustments to the prices of products. It is appropriate to develop detailed guidance on the application of transfer pricing methods for financial transactions.
Keywords: transfer pricing, connected persons, controlled operations, «arm’s length principle».
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