Transfer Pricing in Russia, analyzing an international company during internship – Case Liebherr
Enikeev, Timur (2016)
Enikeev, Timur
Savonia-ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016061913197
https://urn.fi/URN:NBN:fi:amk-2016061913197
Tiivistelmä
Transfer pricing mechanisms have been actively used by foreign companies for more than a half of century. The necessity to optimize financial flows between related parties by establishing transfer prices on the one hand, and the existence of proper economic assessment of pricing data in order to minimize negative financial flows related to possible fines and additional charging by tax authorities on the other hand, have both made transfer pricing issues relevant to foreign organizations.
Since the beginning of the Russian transition to the market economy, Russian companies faced this problem. Underdevelopment of a given market and market institutions in Russian regions, a high degree of monopolization of individual economic sectors, the lack of consolidated information about market transactions and market prices, as well as taxation differences in each of the Russian region, all these aspects exacerbated the problem of transfer pricing between Russian enterprises. Despite the fact that efficiency of transfer pricing in companies is highly influencing the economic situation in the country, extremely insufficient attention has been given for learning the topic of transfer pricing.
Since 1 January 2012, the situation has changed significantly, transfer pricing legislation entered into force, which aims to address the previous shortcomings, to bring into line with international practice.
The main goal of this thesis is to learn deeper the topic of transfer pricing in Russia. The aim of the research is to get to know how companies use transfer pricing for minimizing tax risks and how they select an appropriate transfer pricing method. Fortunately, the author has an opportunity to have professional internship during thesis writing. It helps to understand the topic from the company point of view.
Since the beginning of the Russian transition to the market economy, Russian companies faced this problem. Underdevelopment of a given market and market institutions in Russian regions, a high degree of monopolization of individual economic sectors, the lack of consolidated information about market transactions and market prices, as well as taxation differences in each of the Russian region, all these aspects exacerbated the problem of transfer pricing between Russian enterprises. Despite the fact that efficiency of transfer pricing in companies is highly influencing the economic situation in the country, extremely insufficient attention has been given for learning the topic of transfer pricing.
Since 1 January 2012, the situation has changed significantly, transfer pricing legislation entered into force, which aims to address the previous shortcomings, to bring into line with international practice.
The main goal of this thesis is to learn deeper the topic of transfer pricing in Russia. The aim of the research is to get to know how companies use transfer pricing for minimizing tax risks and how they select an appropriate transfer pricing method. Fortunately, the author has an opportunity to have professional internship during thesis writing. It helps to understand the topic from the company point of view.