INTERNATIONAL EXPERIENCE IN TRANSFER PRICING REGULATION WITHIN THE TAX MANAGEMENT SYSTEM AND OPPORTUNITIES FOR ITS ADAPTATION IN UKRAINE

Abstract

The article investigates international experience in transfer pricing (TP) regulation within the tax management system and the opportunities for its adaptation in Ukraine. The relevance of the topic is driven by the fact that intra-group transactions account for more than 60% of global trade, while the effectiveness of TP mechanisms directly determines the completeness of state budget revenues, the level of a country's investment attractiveness, and the degree of alignment of its tax system with international standards. The purpose of the study is to conduct a systematic comparative analysis of transfer pricing mechanisms within the tax management system across leading foreign jurisdictions in comparison with Ukrainian practice, and to develop substantiated recommendations for adapting best international practices in Ukraine in the context of European integration and post-war recovery.

The study employs general scientific and specialised methods of cognition – comparative analysis (to juxtapose TP systems across jurisdictions by homogeneous parameters), the systems approach (to examine TP as an integral element of tax management), statistical analysis (to process quantitative data), and methods of generalisation and abstraction (to formulate conclusions and recommendations).

A comparative analysis of the regulatory foundations of TP, advance pricing agreement mechanisms, mutual agreement procedures, documentation requirements, and penalty systems was conducted; key gaps between Ukraine and leading jurisdictions were identified – institutional, benchmarking, coordination, and penalty-related. Scientific novelty lies in the comprehensive juxtaposition of TP systems simultaneously across six parameters in five jurisdictions, supported by official OECD statistics, as well as in the introduction of the concept of an "institutional gap" between formal-legal progress and the practical effectiveness of TP administration in Ukraine.

The findings can be applied in forming strategic approaches to activating advance pricing agreement practice, improving the regulatory framework for transfer pricing in line with European integration requirements, and building effective internal tax risk management systems and enhancing corporate tax management instruments in this field.