Determining the Taxable Income Differential between Foreign- and Domestic Companies in Saudi Arabia | Chapter 1 | Modern Perspectives in Economics, Business and Management Vol. 8

 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.

View Book :- https://stm.bookpi.org/MPEBM-V8/article/view/3645

Study on Transfer Pricing: A Case of Saudi Arabia | Chapter 5 | Modern Perspectives in Economics, Business and Management Vol. 2

 This study examines transfer pricing behaviour in the context of the Saudi oil and gas sector, as well as that of a number of other countries (e.g., Australia, Canada, Czech Republic, France, Korea, Japan, Kuwait, Norway, Poland, Sweden, UK, and US). The technique of Bartelsman and Beetsma [1] is proposed as the foundation for evaluating the hypothesis. The findings of this study show that the Bartelsman and Beetsma [1] model fails to detect transfer pricing for the aim of shifting profit when applied to the Saudi Arabian oil and gas sector. When the Bartelsman and Beetsma [1] model is applied to additional countries, such as Japan, Korea, Norway, Poland, and the United Kingdom, it produces results that show the incidence of transfer pricing behaviour for the purpose of shifting profits.

Author (s) Details

Dr. Ali Faya Alhassan
College of Business, King Khalid University, Saudi Arabia.

View Book :- https://stm.bookpi.org/MPEBM-V2/article/view/2323