Transfer pricing: application of economic-statistical methods and compliance challenges for the Republic of Moldova

Abstract

The development and adjustment of the secondary framework on transfer pricing in the Republic of Moldova, as well as the approval of transfer pricing implementation rules, is a research area that has been little explored in the specialized literature. The growing interest in this topic stems from the fact that the business environment is confronted with numerous uncertainties (both methodological and practical) regarding the proper implementation of the new provisions outlined in both the Tax Code of the Republic of Moldova and Order No. 9/2024 on transfer pricing. In this context, the authors have formulated the objective of the present research, which consists of analyzing the methodological challenges and practical implications arising from the application of various statistical calculation methods (lower quartile, median value, upper quartile) in the context of transfer pricing determination, in accordance with the provisions of the Regulation approved by Order No. 9/2024. The aim is to identify and address ambiguities related to the interpretation, understanding, and correct application of these statistical concepts within the framework of the arm’s length principle. Furthermore, the research seeks to emphasize the need for a detailed, clear, and coherent secondary regulatory framework to guide both taxpayers and authorities in the consistent use of these indicators. The findings of this research provide methodological recommendations for the use of economic and statistical indicators in the application of the arm's length principle to determine transfer prices.