MAXIMIZING PROFIT AFTER TAXATION BY EFECTS OF TRANSFER PRICES IN MULTINATIONAL COMPANIES

Abstract

About 70 % of today's world trade
takes place between related companies. Transactions
between them are called assignment or transfer, and
the prices at which the group of related companies
accounted value of the purchase and sale of financial
results, are called transfer pricing. The main aim of
this paper is to determine the impact that transfer
pricing has on the creation of international tax issues.
Transfer prices between related parties may
substantially differ from the prices created for the
same or similar transactions between unrelated
individuals in a free market. Transfer prices are an
important tax issue which is characterized by
increasing complexity and level of commitment of tax
authorities around the world on this issue.