The Problems Of Transfer Pricing

Each item has a price, but not every company is able to independently set the price at which it wants to sell its goods. Firms need to have a streamlined method of setting prices for their goods, and their financial condition depends on it. When choosing a method of pricing, there must be considered and internal and external constraints. The paper discusses the stages of formation of prices in a continuous process of pricing, as well as methods of pricing, their advantages and disadvantages. This paper includes interesting information about the transfer pricing and its interrelationship with tax issues in terms of world economy and Uzbekistan. Author tried to describe need of transnational corporations and holding companies for transfer pricing and potential of Uzbekistan to develop and regulate transfer pricing. There were written some key issues for implementation of transfer pricing. Author approached to transfer pricing as a tool which plays an important role in effective regulating transnational corporations’ activities in Uzbekistan. It’s notable that legislation issues of transfer pricing were also described. Paper shows the basic results of research aiming to investigate transfer pricing issues in Uzbekistan. Availability of two things – systematic approach and principle of system is characterized as main condition to regulate transfer pricing. Key words: Pricing, Transnational corporations, Tax, National legislation