Comprehensive Analysis of Transfer Pricing Legislation in Southeastern Europe Countries

Abstract

Globalization of XXI century is pulling down boundaries; it is bringing people closer and is making a sole world market for trade purpose. The term “Global Village” expresses in the perfect way this modern tendency. In this situation of globalization, big enterprises (corporations) are expanding their original market and are entering in new markets, especially in the emerging countries, creating there subsidiaries of their brands. Consequently, bringing the trade in an international level and making ever-impossible its regulation by national laws. For this purpose, international organizations are becoming more-and-more concerned about this issue and are creating international rules and guidelines to regulate the international trade. Transfer pricing is one of the international trade issues that is regulated by these international bodies. Transfer pricing rules regulate, for the tax purpose, the transactions made by related parties (usually companies part of an international group) that are established [mainly] in different jurisdictions. The attention for this issue is increasingly promptly from the tax authorities of emerging countries as their international trade is also growing swiftly. In this regard, the aim of this analysis is to present and to compare the main transfer pricing rules of a developing region of Europe (Southeastern Europe) and the legislative tendency of the countries that are in this region, which main goal is to be members of European Union.