Importance In the article, I consider the pricing methodology for taxation purposes, which includes five methods of pricing prescribed by chapter 14.3 of the Tax Code of the Russian Federation. They are the method of comparable uncontrolled prices (Tax Code of the Russian Federation, Article 105.9), the resale price method (Tax Code of the Russian Federation, Article 105.10), the cost plus method (Tax Code of the Russian Federation, Article 105.11), transactional net margin method (Tax Code of the Russian Federation, Article 105.12), profit split method (Tax Code of the Russian Federation, Article 105.13). Objectives The purpose of the study is to consider the pricing methodology for taxation purposes and to identify problems, which can arise at its application. Methods I defined the priority of application each of the considered methods. I provided the algorithms of applying each of the methods and the numerical examples illustrating the procedure for market price definition according to considered pricing method. Results I describe a procedure for applying each of the pricing methods prescribed by chapter 14.3 of the Tax Code of the Russian Federation in the form of a demonstrable algorithm, and formulate certain problems related to these methods application. Conclusions and Relevance I conclude that despite rather detailed description of the order of applying the pricing methods for taxation considered in the article, in the Tax Code of the Russian Federation there is a number of problems related to practical applicability of these methods. The main deficiency of the comparable uncontrolled price method, the resale price method, the cost plus method and the transactional net margin method is complexity of selecting comparable transactions and organizations. The profit split method requires that tax officers analyzing a transaction would have high qualification and expert knowledge.
Keywords: transfer pricing, tax control, comparable uncontrolled price, resale price, cost plus, method, transactional net margin, profit split
References:
Agapova N.A. Novye pravila transfertnogo tsenoobrazovaniya [New transfer pricing rules]. Pravo i ekonomika = Law and economics, 2011, no. 9, pp. 38–47.
Bryzgalin A.V., Bogdanova A.A., Il'inykh D.A. Kontrol' za transfertnymi tsenami [Control over transfer prices]. Nalogi i finansovoe pravo = Taxes and finance law, 2012, no. 5, pp. 28–185.
Golishevskii V.I. Metody transfertnogo tsenoobrazovaniya: OESR rekomenduet [Transfer pricing methods: OECD recommends]. Nalogovaya politika i praktika = Tax policy and practice, 2011, no. 9, pp. 34–37, no. 10, pp. 50–53.
Golishevskii V.I., Kizimov A.S. Mezhdunarodnye printsipy nalogovogo regulirovaniya transfertnogo tsenoobrazovaniya [International principles of tax regulation of transfer pricing]. Finansy = Finance, 2011, no. 7, pp. 32–36.
Ziatdinov E. Transfertnyi tuman [Transfer fog]. Konsul'tant = Consultant, 2013, no. 7, pp. 46–48.
Zozulya V.V., Khochaev I.M. Perspektivy razvitiya transfertnogo tsenoobrazovaniya v Rossii [Prospects for transfer pricing development in Russia]. Mezhdunarodnyi bukhgalterskii uchet = International accounting, 2013, no. 45, pp. 26–31.
Ivanov A.E., Dzyuba E.A. Evolyutsiya nalogovogo kontrolya transfertnogo tsenoobrazovaniya v Rossiiskoi Federatsii [Evolution of tax control over transfer pricing in the Russian Federation]. Mezhdunarodnyi bukhgalterskii uchet = International accounting, 2014, no. 27, pp. 19–33.
Lermontov Yu.M. Novye pravila transfertnogo nalogooblozheniya [New rules for transfer taxation]. Nalogovoe planirovanie = Tax planning, 2011, no. 4, pp. 19–30.
Lermontov Yu.M. Novye pravila transfertnogo nalogooblozheniya, ili Kommentarii k izmeneniyam, vnesennym v NK RF Federal'nym zakonom ot 18.07.2011 № 227-FZ [New rules for transfer taxation or Comments on amendments to the RF Tax Code of July 18, 2011 № 227-FZ]. Finansy: planirovanie, upravlenie, kontrol' = Finance: planning, management, control, 2011, no. 6, pp. 27–38.
Mambetalieva A.N. Kontrol' za transfertnym tsenoobrazovaniem v gosudarstvakh – chlenakh EvrAzES (pravovoi obzor) [Control over transfer pricing in the member States of EurAsEC (a legal review)]. Finansovoe pravo = Financial law, 2010, no. 6, pp. 33–37.
Meshalkin V.K. Kontrol' tsen v tselyakh nalogooblozheniya (transfertnoe tsenoobrazovanie) [Price control for tax purposes (transfer pricing)]. Moscow, AiSi Grupp Publ., 2013, 128 p.
Parasotskaya N.N., Klyueva E.O. Uchet i nalogooblozhenie transfertnogo tsenoobrazovaniya [Accounting and taxation of transfer pricing]. Finansovyi vestnik: finansy, nalogi, strakhovanie, bukhgalterskii uchet = Financial bulletin: finance, taxes, insurance, accounting, 2014, no. 4, pp. 41–49.
Pletneva G. Nalogovyi kontrol' transfertnogo tsenoobrazovaniya trebuet yasnosti [Tax control over transfer pricing requires clarity]. EZh-Yurist, 2014, no. 15, p. 14.
Pozdysheva O.Yu. Nalog na pribyl' i transfertnoe tsenoobrazovanie [Income tax and transfer pricing]. Nalog na pribyl': uchet dokhodov i raskhodov = Income taxes: income and expense accounting, 2012, no. 9, pp. 15–32, no. 10, pp. 59–79.
Raizberg B.A., Lozovskii L.Sh., Starodubtseva E.B. Sovremennyi ekonomicheskii slovar' [Modern dictionary of economics]. Moscow, INFRA-M Publ., 1999, 479 p.
Smolina A. Transfertnoe tsenoobrazovanie: nereshennye voprosy [Transfer pricing: unresolved issues]. Finansovaya gazeta, 2013, no. 10, pp. 12.
Khavanova I.A. Ekonomiko-pravovoi byulleten'. Transfertnye tseny v nalogovom prave. № 7 [Bulletin of economics and law. Transfer prices in the tax law. No. 7]. Moscow, Ekonomicheskaya gazeta Publ., 2014, 158 p.
Chaikovskaya L.A., Mamrukova O.I. Nalogovyi kontrol' za transfertnym tsenoobrazovaniem: problemy, novatsii zakonodatel'stva i tendentsii povysheniya effektivnosti [Tax control over transfer pricing, new issues in legislation and trends in efficiency increase]. Mezhdunarodnyi bukhgalterskii uchet = International accounting, 2012, no. 40, pp. 35–49.
Shapovalov M.A. Nalogovyi kontrol' i transfertnoe tsenoobrazovanie [Tax control and transfer pricing]. Finansovoe pravo = Financial law, 2012, no. 9, pp. 28–32.
