The purpose of this research is to examine if, as a result of transfer pricing policies, there is a difference in tax paid based on revenue differentials between Saudi Arabian domestic oil companies and foreign-owned oil companies operating in the nation. The process of assessing the income of all parties involved in international economic transactions is known as transfer pricing (TP). The sample will include 13 domestic and 8 international enterprises. Borvornboonrutai (2001) used a number of linear regression equations to better understand the variables related to transfer pricing and the level of taxes paid by domestically-owned vs overseas corporations operating in Thailand. The research' findings clearly show that the amount of taxes paid by the oil businesses investigated in this study varies based on their origin. Saudi Arabian-owned enterprises pay lesser taxes in relation to their revenues than companies owned by foreigners. The real difference in tax rates was roughly 4.5 percent, and statistical tests confirmed that it was statistically significant.
Author (S) Details
Ali Faya Alhassan
College of Business, King Khalid University, Saudi Arabia.
Mohammed Saleh Bajaher
College of Business, King Khalid University, Saudi Arabia and College of Administrative Science, Aden University, Yemen.
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