Effect of transfer pricing on the group's total tax liability

This bachelor thesis focuses on the issue of transfer pricing and its impact on the overall tax liability of a company. The aim is to show, through a case study, how a change in the transfer price can affect a firm's tax burden. First, the thesis focuses on the theoretical framework - it explains what transfer pricing is, what legislation regulates it (in particular OECD recommendations and national legislation) and what are the requirements for its documentation. It then discusses the various methods of their determination and their practical application. Attention is also paid to the risks associated with incorrect pricing, including possible penalties and international tax disputes. The practical part shows how transfer pricing affects tax optimisation, tax base and profit localisation decisions within a corporate group, using concrete examples and model calculations.