Annals of the University of Oradea: Economic Science (May 2008)

TRANSFER PRICES: MECHANISMS, METHODS AND INTERNATIONAL APPROACHES

Journal volume & issue
Vol. 3, no. 1
pp. 1402 – 1406

Abstract

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Transfer prices are considered the prices paid for the goods or services in a cross-border transaction between affiliates companies, often significant reduced or increased in order to avoid the higher imposing rates from one jurisdiction. Presently, over 60% of cross-border transfers are represented by intra-group transfers. The paper presents the variety of methods and mechanisms used by the companies to transfer the funds from one tax jurisdiction to another in order to avoid over taxation.

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