Policies regarding transfer pricing should be adjusted

1. Abstract

Transfer pricing policies represent a critical area of concern for multinational enterprises as they navigate the complexities of global taxation and regulatory compliance. The growing interconnectedness of economies and changes in international tax frameworks necessitate a reevaluation of how these policies are structured and implemented. The purpose of this report is to delve into the challenges associated with current transfer pricing strategies and to propose adjustments that can lead to greater transparency, fairness, and alignment with the economic realities of business operations. In recent years, scrutiny of transfer pricing practices has intensified due to increasing demands for multinational companies to demonstrate that their profit allocation aligns with the value created in each jurisdiction. Governments are keen on closing tax loopholes that arise from aggressive transfer pricing practices, which can shift profits to low-tax jurisdictions, thereby eroding
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