Transfer Pricing in Accounting and Taxes

This bachelor's thesis deals with transfer pricing, the method of its assessment and related transfer pricing documentation. The aim is to introduce main principles and methods used when forming transfer prices, specially the arm's length principle; this thesis also defines controlled transactions between associated enterprises and puts related processes into wider legislative framework and methodological directions of the Czech Republic, European Union and Organisation for Economic Co-operation and Development (OECD). Based on thorough knowledge of the theoretical framework the author proposed transfer pricing documentation of a particular company in a way that could be presented to tax administration both when demonstrating tax obligation and seeking the method approval