Alban ULQINI, M.Sc. & Gledia KOKOSHI, M.Sc.

Abstract The main focus of this paper is to analyze the Transfer Pricing (TP) legislation applicable in Albania. The paper will identify will make a comparison between the provisions of Albanian TP legislation with other practices in Europe. The paper intends to give a brief outline of the subject of transfer pricing, its purpose and the practical issues and concerns related to the subject. The paper will explain the economic logic behind each of the TP analyzing methods and the reason behind the selection of such methods. In addition, the paper will stress the importance of the existence of a clear detailed TP legislation and high level of expertise in the field from all market participants. It will give importance also to the balance between the administrative burden that TP legislation requires to taxpayers and the benefits deriving to the tax collection from the application of the legislation.
Key words transfer pricing, tax avoidance, tax, profit shifting
JEL classification H25, H87