<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Subject and purpose of work:</bold> The subject of this study is transfer prices and their use for optimization of financial burdens of international companies (capital groups). The purpose of this study was to present transfer pricing issues in the light of applicable law and using them for tax purposes.<bold>Materials and methods:</bold> The study uses literature and data from the World Bank and Google. Methods of descriptive and tabular analysis and inference were used.<bold>Results:</bold> Google makes 91% of its revenues outside the US.<bold>Conclusions:</bold> Transfer pricing is a tool for optimizing tax burden of international companies that bring them benefits in the form of the so-called “globalization annuity”, which makes them economically stronger and more technologically competitive. Polish tax law on transfer pricing has been tightened since 2001; transfer pricing issues are also regulated by the European Union and the Organization for Economic Cooperation and Development (OECD).</abstract>

Subject and purpose of work: The subject of this study is transfer prices and their use for optimization of financial burdens of international companies (capital groups). The purpose of this study was to present transfer pricing issues in the light of applicable law and using them for tax purposes.Materials and methods: The study uses literature and data from the World Bank and Google. Methods of descriptive and tabular analysis and inference were used.Results: Google makes 91% of its revenues outside the US.Conclusions: Transfer pricing is a tool for optimizing tax burden of international companies that bring them benefits in the form of the so-called “globalization annuity”, which makes them economically stronger and more technologically competitive. Polish tax law on transfer pricing has been tightened since 2001; transfer pricing issues are also regulated by the European Union and the Organization for Economic Cooperation and Development (OECD).

Transfer Prices and Aggressive Tax Optimization

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Transfer Prices and Aggressive Tax Optimization"}

Subject and purpose of work: The subject of this study is transfer prices and their use for optimization of financial burdens of international companies...

Transfer Prices and Aggressive Tax Optimization

Published Online: Sep 30, 2019

Page range: 242 - 253

Received: Jul 01, 2019

Accepted: Aug 01, 2019

DOI: https://doi.org/10.2478/ers-2019-0022

Keywords
transfer pricing, globalization, multinational enterprises, tax havens, intellectual property, globalization annuity

© 2019 Marian Podstawka, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Transfer Prices and Aggressive Tax Optimization

Published Online: Sep 30, 2019

Page range: 242 - 253

Received: Jul 01, 2019

Accepted: Aug 01, 2019

DOI: https://doi.org/10.2478/ers-2019-0022

Keywordstransfer pricing, globalization, multinational enterprises, tax havens, intellectual property, globalization annuity

© 2019 Marian Podstawka, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
transfer pricing, globalization, multinational enterprises, tax havens, intellectual property, globalization annuity