Transfer Pricing Rules: National and International Approach.

The need to regulate transfer pricing is a subject of international importance due to the needs developed by international corporations. The Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations made a opinion paper on the transfer pricing system used by transnational companies as early as 1979, and in 1995 made a guidelines on transfer pricing for tax administrations and transnational companies. In the European Union, these operations have become widespread and generate significant losses of tax revenue, leading to an acute need for legislation to normalize these practices. In order to help countries where this issue is frequently encountered, the European Union has come up with a real solution, namely to adopt a common consolidated corporate income tax base. [ABSTRACT FROM AUTHOR]