TRANSFER PRICING IN THE MANAGEMENT ACCOUNTING SYSTEM

Abstract

Any company that includes several divisions can sell its products both to the outside and sell them inside
the company itself. For intra-company transactions, separate prices are applied – this is how transfer pricing
takes place, in simple words, the process of determining tariffs for transactions between interdependent
organizations. The article summarizes the key concepts of the Russian transfer pricing rules, methods and
criteria of tax regulation. The transfer pricing mechanism is actively used in Russia today by both Russian
and foreign companies. The reasons for the widespread use of this mechanism were the underdevelopment
of the market and market institutions in the regions of Russia, the high degree of monopolization of certain
sectors of the economy, the lack of consolidated information on market transactions and market prices, as
well as differences in tax conditions in different subjects of the Russian Federation.