Bert Steens, Thibaut Roques, Sébastien Gonnet, Christof Beuselinck, Matthias Petutschnig. 2022. Transfer pricing comparables: Preferring a close neighbor over a far-away peer?,
Journal of International Accounting, Auditing and Taxation 47, https://doi.org/10.1016/j.intaccaudtax.2022.100471.

 

Highlights

•We study country and firm characteristics for international transfer pricing comparables.

•Country-risk explains the operational profitability of a company better than its geographic region.

•This supports expanding the current regional scope of comparables searches to a global level, provided that country risk is controlled for.

•In the absence of proper country risk adjustments, developing countries may receive too little tax revenues when using traditional comparables.

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