Harmonization of the legislation of the Republic of Moldova with the OECD Transfer Pricing regulations

Abstract

In the context of the globalisation of national economies and the galloping growth of multi-nationals, transfer pricing regulations have become a key element in avoiding the erosion of the tax base and the shifting of profits to low or zero tax jurisdictions. The Republic of Moldova, in its effort to integrate international tax practices and attract foreign investment, faces significant challenges in aligning national legislation with OECD standards. The purpose of this paper is to explore the complex and critical process of harmonising Moldovan legislation with the Organisation for Economic Co-operation and Development (OECD) transfer pricing regulations. Although the Republic of Moldova has made significant progress towards harmonising its legislation with OECD transfer pricing regulations, there are still many areas of inconsistency that require attention and adaptation. These include the need for clarification and detail in national legislation, and the need to develop better administrative capacity for effective implementation of the regulations. CZU: [334.726:338.5]:346.61(478); JEL: F23; H25; K34; DOI: https://doi.org/10.53486/isca2024.04