Tax Legal Issues, Transfer Pricing Of Tangible Property Transactions Between Affiliated Companies

Transfer pricing is one of the most important tax issues confronted by the transnational enterprises. The transfer pricing regime of tangible goods,on which this dissertation is focused,is the most basic and important part of transfer pricing regime.This dissertation is divided into five chapters. Chapter one is a general study on the basic concepts and principle of transfer pricing regime. The first section of this chapter mainly discusses the concepts of related enterprises,transfer pricing and transfer pricing regime,etc. The second section is on the Arm's Length Principle (A. L P.). The principal contention of this chapter is that the A. L. P. will,in the quite long future,still be the basic principle of transfer pricing regime.The second chapter,which consists of five sections,is on the traditional transaction methods of pricing tangible goods. In addition to the first and last sections,which make general account and review on the traditional pricing methods,the other three sections discuss the CUP,RP,and C+ methods respectively. This chapter argues that the traditional transaction methods,which base on and apply specifically the A. L. P.,will not be replaced by other methods,but they shall be complemented by some other methods due to their defectiveness in meeting the needs of complicated realities.The third chapter focuses on the profit methods which include PS,3PM,and TNMM. But the relevant countries or organizations have different idews on these methods. The author contends that the generation and sxistence of these methods in some way have their reasonableness,but:he relevant countries and organizations need to make some coordination;o the discrepancies to promote the development of international trade ind investment.Chapter four makes a research into the administration procedures oftransfer pricing. This chapter consists of four sections. The first two sections generally state and study the file procedure of the taxpayer and the regulation procedure of the tax authority. The third section makes a keen study into the transfer pricing disputes settlement procedures,while the last section probes deeply into the advance pricing arrangements (APAs). The argument of this chapter is that the transfer pricing administration procedure is an important part of the transfer pricing regime,and the new procedures generated in the last a few years are beneficial to the effective implementation of the transfer pricing regime.The last chapter of this dissertation is devoted to China's legislation of the transfer pricing of the intracompany transactions of tangible goods. This chapter,which is the end of this dissertation,falls into four sections. The first section makes a general account on the background,sources,etc. of Chinese transfer pricing legislation. Based on the previous chapters,the second section analyses the application range and principle of transfer pricing adjustment,and gives some improvement suggestions. The third and fourth sections make a thorough analysis into the transfer pricing methods and administration procedures respectively and put out some ideas about their improvements.