Details

Autor(en) / Beteiligte

• Couto, Joaquim António Marques

Titel

The Evolution and the Requirements of Transfer Pricing in Portugal: The Study of a Portuguese Company Perception of Transfer Pricing in the Light of Institutional Theory

Ort / Verlag

ProQuest Dissertations & Theses

Erscheinungsjahr

2023

Link zum Volltext

• ProQuest

Quelle

ProQuest Dissertations & Theses A&I

Beschreibungen/Notizen

• Multinational enterprises have acquired great importance in the global economy in recent decades. The growing number of companies with subsidiaries in several countries has brought advantages for economic actors, but also challenges. Such challenges affect both Multinational Enterprises and sovereign states.One of the main problems that has arisen is the issue of transfer pricing. Transfer pricing is the price that one unit of an enterprise charges another unit of the same enterprise for the goods (tangible or intangible) and services it provides.In this area, several problems have arisen over the years leading to the need for strong transfer pricing regulation.Throughout this report a review of the existing literature on this topic is provided. It is then shown how a firm resident in Portugal should behave to prove that its transfer prices are within the arm's length range.Institutional theory was also used to study the perception that the Portuguese firm studied has about the same transfer prices.Through semi-structured interviews with professionals in the area and an academic, it was realized that the area is still underexplored, due to the small size of Portuguese companies and the lack of technical knowledge among companies. In addition, the greater experience held by specialized consulting firms, together with financial issues, such as access to a database or the fact that it is cheaper to pay for documentation than to have professionals allocated to it, lead to companies not showing much interest in exploring the area. Suggestions that could improve the company interest and practice in transfer pricing are also pointed out, as well as the limitations of this research and paths for future research.