Transfer pricing involves setting prices for assets, services, and funds transferred within an organization, such as goods sold from a production division to a marketing division or from a parent company to a foreign subsidiary. Unlike market transactions, these internal prices affect how profits are distributed within the company.

Fiscal authorities worry that multinational entities may manipulate transfer prices to reduce taxable profits, leading to stringent regulations and compliance requirements.

To address this, RKDA International is developing a standardized global transfer pricing documentation system. A working group was formed to gather examples from colleagues and competitors, and a budget was approved at the members' meeting in Bucharest to create a unified system.