Transfer Pricing and Developing Economies A Handbook for Policy Makers and Practitioners

Multinational enterprise tax practices and aggressive tax planning face unprecedented scrutiny, making transfer pricing a critical concern for developing economies. These nations are particularly vulnerable to abusive transfer pricing, which poses a significant risk to their direct tax base, often a major source of government revenue. This handbook provides essential guidance for policymakers and practitioners seeking to establish or strengthen their transfer pricing regimes.

The book outlines analytical steps to assess a country's exposure to transfer mispricing and details the key considerations for designing and implementing effective transfer pricing policies. It covers the legislative process, including policy formulation and administrative guidance, alongside practical applications of the arm's length principle and strategies for robust audit programs. This resource offers a framework to protect national tax bases and enhance domestic resource mobilization, while also considering the broader investment climate.