Role of Transfer Pricing as a Tax Requirement to Improving Transparency in Multinational Enterprises in Saudi Arabia

Almalki, Shuruq (2019) Role of Transfer Pricing as a Tax Requirement to Improving Transparency in Multinational Enterprises in Saudi Arabia. [Dissertation (University of Nottingham only)]

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Taxation in Saudi Arabia is a major topic of discussion for the government and private entities. The country has attracted many multinational enterprises (MNEs) that operate in highly complex environments, as the increasing variety and volume of transfer-pricing regulations and intercompany transactions have made transfer pricing in Saudi Arabia a major necessity. The research critically investigates the role of transfer pricing as a tax requirement in improving transparency in MNEs in Saudi Arabia. Saudi Arabia was selected as the case study because it is currently in the process of adopting transfer-pricing guidelines, which it aims to establish within the next five years. In order to evaluate and determine the effect of transfer pricing in the country, a questionnaire was designed to collect the opinions of MNE stakeholders and other tax payers. The questionnaire responses were critically analysed and reflected upon. The findings indicate that most of the respondents prefer the use of the Organization for Economic Corporation and Development (OECD) framework, which is recognised as one of the best transfer-pricing frameworks in many developed countries. In summary, the findings show that the adoption of a transfer-pricing framework in Saudi Arabia will help to promote compliance and transparency among the MNEs operating in the country; however, the government will need to create more measures, such as training, since transfer pricing can be a cumbersome process for developing countries. These findings should help Saudi Arabia’s stakeholders and policy-makers review their transfer-pricing regulations and come up with the approach that will promote transparency and compliance the best.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Almalki, Shuruq
Date Deposited: 01 Dec 2022 09:33
Last Modified: 01 Dec 2022 09:33

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