Proposal of transfer pricing rule for SMEs: case study of the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F16%3A43906721" target="_blank" >RIV/62156489:43110/16:43906721 - isvavai.cz</a>

Result on the web

<a href="http://icfb.rs.opf.slu.cz/sites/icfb.rs.opf.slu.cz/files/solilova_nerudova.pdf" target="_blank" >http://icfb.rs.opf.slu.cz/sites/icfb.rs.opf.slu.cz/files/solilova_nerudova.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Proposal of transfer pricing rule for SMEs: case study of the Czech Republic

Original language description

Transfer pricing represent significant issue because it influences the determination of income and expenses and consequently taxable profit of associated enterprises in different tax jurisdictions. Generally, transfer pricing treatments do not reflect direct distinction between the type or size of the entity. However, SMEs are not able to bear the high administrative burden to comply with transfer pricing rules like as the large entities. Therefore, some European countries introduced specific transfer pricing rules for SMEs or excluded SMEs from transfer pricing rules. Our paper focuses on transfer pricing simplified measurements for SMEs operating in individual NACE sectors in the Czech Republic. The most important sectors, where SMEs operate, represent agriculture, forestry and fishing; manufacturing; construction; professional, scientific and technical activities; accommodation and food, real estate activities, information and communication; and wholesale and retail trade, repair of motor vehicles. The aim of paper is to propose transfer pricing rules for SMEs in the context of their specificity in order to reflect sectoral and size-classes differences in the Czech Republic. Our proposal also takes into account the Guidelines on Low Value Adding Intra-Group Services issued by the EU Joint Transfer Pricing Forum and proposed modifications to chapter VII of the OECD Transfer Pricing Guidelines relating to low value-adding intra-group services based on the BEPS action 10.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

<a href="/en/project/GA15-24867S" target="_blank" >GA15-24867S: Small and medium size enterprises in global competition: Development of specific transfer pricing methodology reflecting their specificities</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 15th International Conference on Finance and Banking

ISBN

978-80-7510-186-0

ISSN

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e-ISSN

neuvedeno

Number of pages

10

Pages from-to

356-365

Publisher name

Slezská univerzita v Opavě

Place of publication

Opava

Event location

Praha

Event date

Oct 13, 2015

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000447679800037