Transfer Pricing Policy for Bangladesh
20 Pages Posted: 20 Feb 2003
Date Written: November 4, 2002
Abstract
As Bangladesh tries to increase the level of foreign direct investment, the authorities may formulate a transfer pricing policy to reduce the scope for detrimental profit-shifting activities of transnational corporations. A simple model to illustrate the role of transfer pricing in intra-corporate cross-border trade is presented. It is argued that while Bangladesh's transfer pricing policy should be based on internationally accepted principles, it will have to be suitable to the situation of the country and congruent to the administrative capability of the national tax authorities. Key challenges and further research topics in transfer pricing issues pertaining to Bangladesh are identified and discussed.
Keywords: Bangladesh, Transfer Pricing, Tax, Transnational Corporations, Multinational Corporations, Foreign Direct Investment
JEL Classification: D21, F13, H25, H32, L11, O23
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Nature and Growth of Vertical Specialization in World Trade
By David L. Hummels, Jun Ishii, ...
-
Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras
-
Integration vs. Outsourcing in Industry Equilibrium
By Gene M. Grossman and Elhanan Helpman
-
Firms, Contracts, and Trade Structure
By Pol Antras
-
The Evolving External Orientation of Manufacturing: A Profile of Four Countries
-
The Evolving External Orientation of Manufacturing Industries: Evidence from Four Countries
-
Can Vertical Specialization Explain the Growth of World Trade?
By Kei-mu Yi