CONCEPTUAL FOUNDATIONS AND INTERNATIONAL EXPERIENCE OF IMPLEMENTING THE SAFE HARBOUR REGIME IN TRANSFER PRICING

Abstract

The article examines the conceptual basis and international experience with the implementation of the safe harbour regime in the area of transfer pricing. It argues for the need to use this mechanism as an effective tool for minimising tax risks, optimising the administrative burden and increasing the predictability of tax rules. It is noted that the safe harbour regime is based on the establishment of clear criteria for low-risk transactions, which makes it possible to reduce the volume of controls and increase the level of transparency of intra-group transactions. The article analyses the main features of the safe harbour regime, in particular its voluntary nature, the clarity of the compliance criteria, the simplification of administrative procedures, the limitation of its scope and the harmonisation with international standards. It shows that the implementation of this regime helps to reduce conflicts between business and tax authorities, promotes trust between the parties and contributes to the creation of a stable tax environment. The historical aspects of the emergence of the concept of safe harbours in the context of global initiatives to combat base erosion and profit shifting (BEPS) are examined. The role of the Organisation for Economic Co-operation and Development (OECD) in developing standards to ensure consistency in transfer pricing approaches is identified. International experience in implementing the regime in developed countries, such as the United States, Germany and Australia, and in developing countries, such as Brazil and India, will be examined. The paper analyses the advantages and disadvantages of different models of safe harbour implementation, taking into account their adaptability to local conditions, their compliance with international standards and their ability to minimise administrative costs. Particular attention is paid to the harmonisation of the safe harbour regime with European directives, which ensures consistency of tax approaches within the Single Economic Space. It finds that the use of this regime in EU countries helps to attract investment, but faces challenges due to the need to take into account national specificities. It is demonstrated that the successful implementation of the safe harbour regime depends on its adaptation to the national legal framework, institutional characteristics and economic realities. Evidence shows that clarity of criteria and transparency of procedures are key conditions for effective implementation of the regime. The author suggests ways to improve the mechanisms for implementing safe harbours, taking into account international recommendations and the specific economic conditions of individual countries. The author identifies the need to create tools to monitor the effectiveness of the regime and to provide technical assistance to tax authorities and companies. The research analyses the potential impact of safe harbours on the tax system and investment climate of the countries implementing the regime. It is shown that the introduction of safe harbours has a positive impact on reducing administrative costs, reducing the number of disputes and stimulating economic activity. It concludes that the safe harbour regime is an important strategic tool in the transfer pricing system that can ensure a balance between the interests of the state and those of business. The author emphasises the need for further research to integrate the best international practices into national tax systems. The study provides a theoretical and practical basis for the development of new approaches to the implementation of safe harbours that will facilitate the integration of countries into the global economic system and increase their competitiveness.