The article examines the tools for adjusting the company’s profitability, which can be used in transfer pricing. In recent decades, countries have adopted various rules to combat tax evasion and tax avoidance. Among such rules, it is advisable to single out the rules of transfer pricing and the rules of controlled foreign companies. These efforts have gained significant attention considering the G20 and OECD BEPS initiative. The regulations on transfer pricing contain regulations on the implementation of the «arm's length» principle. The regulations define the methods that can be used to calculate transfer prices, define documentation requirements, include in your application various special requirements necessary to confirm the transfer prices used, and establish penalties for detection of incorrect pricing or inadequate documentation. According to the legal and regulatory norms, the profitability of the controlled operation can be within the range and outside the price range. Depending on the type of controlled transaction, the company may not take any action (if all regulations are met) or may have to make an independent price adjustment. To determine profitability, it is necessary to sample prices and financial indicators of similar comparable operations on the market. The article discusses methods of transfer pricing: comparative uncontrolled price, resale price, «cost plus», net profit, distributed profit. The reasons for the drop in profitability have been identified. A credit note is defined as an effective tool for adjusting profitability. This tool allows for quality control and minimizing possible credit risks. International practice indicates the effectiveness of using the credit note mechanism to adjust profitability in transfer pricing. It was established that in Ukraine the legal status of a credit note is not defined in the legislative framework. This situation creates problems when using this tool and does not contribute to its wider use.
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