Methods and theories on transfer prices

Abstract

In the current global economic situation, when multinationals companies are no longer a rarity and the increase of volume and frequency of intra-group transactions are a reality, the transfer prices issue has become a problem for big companies because it significantly affects the fiscal task of the groups.
The transfer price is basically the price used for transfer of tangible and intangible assets between related parties and it should be determined on the basis of market value without being influenced by the relationship of affiliation. However, if for services or tangible assets, the comparison of the transfer price to the market one is relatively easy to achieve, for the intangible ones, quantifying future benefits waived by the affiliated person compared to the situation in which it would be independent is harder to be established.