Science and Technology Enterprises should ensure their activities are compatible with the science and technology policies of their countries.
In the context of globalization, International trade has become an even more important topic now that so many countries have begun to move from state-run to market-driven economies.
International transfer pricing raises further issues to be considered in addition to those presented under domestic transfer pricing.
The main purposes of this figure are to allow each country to collect all the taxes they have the right to and for multinational companies, to develop different tools in order to help them managing the problems of being regulated under several and different fiscal jurisdiction.
Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen.
In a multinational company strict international tax laws regulate the amounts charged for goods and services, tangible or intangible, which cross borders. Currently, the price Southern is charging is based on the market but they are running under capacity and had excess inventory.
Malta has obtained derogation from the EU upon negotiating its accession to the union to extend this period to ten years only after The first country in elaborating law against price manipulation was the United Kingdom inunder the Finance Act which regulated the way in which profits were adjusted when a non-UK resident carried on business with, and controlled, a UK settled business.
It is the historical process and transformational development in the global arena, where growth and establishment of global connections in the international community continues to evolve.
Within these regulations we can also find different methods of transfer pricing depending on which goods, services or use of property are transferred, for the difference of the nature of the transaction. In view of the expansion of the pharmaceutical industry in Malta and the relative importance of international transfer pricing in the pharmaceutical industry, a study is considered indispensable to explore and assess the various transfer pricing methods used and the objectives pursued through such systems.
Cost-plus a mark-up transfer prices - the products or services are transferred at a price equal to cost plus a profit mark-up so that the supplying division will be able to show a profit on such transfers.