Transfer Pricing and Its Influence on Corporate Financial Management

This bachelor's thesis focuses on the basic legislation and practical application of transfer pricing (hereafter TP) within economic structures, particularly in the context of the company where I work. The main objective is to analyze and demonstrate how TP influences managerial decision-making within the company, especially in the pricing of services performed and invoiced between economically related companies, and in the pricing of money—such as interest rates in cash pooling arrangements and financing of subsidiaries—while adhering to the framework of local and European legislation. The theoretical basis of the thesis includes OECD guidelines, the instructions of the Czech General Financial Directorate (GFŘ) on transfer pricing, and internal regulations derived from a market analysis conducted by a consulting firm for the analyzed company. The thesis aims not only to describe the fundamental principles of TP and its legal framework but also to illustrate the practical steps and adjustments that the company actively undertakes to manage operations efficiently in compliance with Czech legislation. The findings of this work may serve as an inspiration for other companies beginning to address this issue and provide a practical insight into the topic of the cost of money and internal financing within groups of economically related companies.