Development of theoretical and practical principles of budgetary and tax policy for transfer pricing regulation

Abstract

The article explores the theoretical and practical principles of one of the key components of fiscal policy aimed at forming state centralized fund revenues - budgetary and tax policy in the field of transfer pricing. Based on an analysis of previous research, the main characteristics of transfer pricing are highlighted. Theoretical foundations of budgetary and tax policy for financial regulation of transfer pricing have been developed. The essence of budgetary and tax policy for transfer pricing regulation is defined from institutional and systemic perspectives, with its functions and the set of principles upon which it should be based outlined. It is demonstrated that the process of designing and implementing budgetary and tax policy in the field of transfer pricing is carried out within the framework of achieving the overarching goals and objectives of fiscal policy in state revenue formation. It is established that institutional support within the transfer pricing regulation system involves the implementation of the logical relationship: “fiscal policy > fiscal policy in the area of revenues > budgetary and tax policy > budgetary and tax policy in the area of transfer pricing.” A methodological approach has been developed for the practical implementation of budgetary and tax policy by evaluating its implicit characteristics concerning the taxation of corporate financial results. Within the profit tax collection mechanism, an implicit imperfection in budgetary and tax policy regarding revenues has been identified under conditions of instability caused by war. It is concluded that budgetary and tax policy requires further improvement to enhance its effectiveness and efficiency, ensuring compliance with the fundamental principles of design and implementation, particularly in the area of transfer pricing.