Study On Some Issues Of Tax Law Concerning Intangible Asset Transfer Pricing

During the process of economic globalization, multinational enterprises, with their transnational production and marketing superiorities, take advantage of the tax system differences among the countries and the loopholes existing in the foreign tax laws to transfer profits and to avoid the tax burden in a certain region by various means for profit maximization on a global scale. Transfer pricing is a classical method most commonly used by multinational enterprises. It reflects not only the game between taxpayers and tax authorities in one country ,but also may involve the allocation and coordination of tax interests among the related states. Accompanied by the rapid development of knowledge-based economy , more and more multinational enterprises make use of the characteristics of intangible assets, such as physical intangibility and uncertain value, and engage in internal transaction frequently to transfer profits by manipulating prices. These behaviors have severely infracted tax benefits of the host country and have brought much trouble to local tax authorities meanwhile. Therefore, it is extremely practical and significant to study on some issues of tax law concerning intangible assets transfer pricing.Most of the researchs on transfer princing perspective from the accounting or international trade theory. The study on intangible assets transfer pricing are often scattered on the monographs on the measurement of intangible assets . All above do lack of systematic theoretical study. It is rare to see mature researchs on intangible assets transfer pricing from a legal point of view. In practical, the USA has the most comprehensive legislation and the most abundant experience. In contrast, tax law systems against intangible assets transfer pricing in China only has shown signs of embryonic and exists many loopholes. It needs to do the necessary improvements urgently by drawing on advanced international experience .This thesis starts from the basic concepts , from the surface to the deep. It takes the basic theory of intangibie assets transfer pricing tax system as the beginning. It introduces the concepts , principles and methods of intangible assets transfer pricing. On the basis of basic theories about intangible assets transfer pricing , a deep analysis of the tax law theoretical basis has been made. And it emphasis theories on the fairness taxation principle,the statutory taxation principle, the neutral taxation principle and tax jurisdictions as the tax law theoretical basis of intangible assets transfer pricing. Then it introduces the tax law concerning on intangible assets transfer pricing in the USA and regions ruled by OECD partly in order to be used for references. After that, it introduces legislative history and current rules of intangible assets transfer pricing in China and analyze the problems exist in the current system of intangible assets transfer pricing. At last, based on the beneficial overseas experiences, combined with China's national conditions, we try to put forward corresponding legal countermeasures to the taxation of intangible assets transfer pricing from the substantives and the procedures.