International transfer pricing and the problems encountered in taxation process

Transfer Pricing is a method used by firms in the transfers of goods and service among partnership of the firm. In addition to the use evaluation of the related units performance in understanding of the economy,transfer pricing used particularly for the making advantage of the tax by the firms may be sometimes used for bad purpoces and lead to capital movement and tax explaitation among cauntries with the worded of mentioned negative sitmations while the countries make necessory regulations ın, our country law makers made law talking OECD regulation into consideration and by means of 5520 numbered-Institutation Tax Low , suitable transfer pricing In this study,the impact of transfer pricing on Turkish Tax system has been taken over. In this respect,ın the first section of the study Theoritical framework of transfer pricing has beendrown, ın the second section, ınternational transfer pricing and regulations made by related countries have been taken on. Andin the last section,Transfer pricingin Turkish Tax System and innovations whic 5422 and 5520 numbered institutional Tax brought and the evaluation tax revenue and Added Value Tax laws as regards transfer pricing have been takenon, and the problems detected ,n the application of international tranfer pricing,an solving suggestions have been taken on.