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Research On The Regulations Of Transfer Pricing

Posted on:2009-07-02Degree:MasterType:Thesis
Country:ChinaCandidate:P LiuFull Text:PDF
GTID:2166360245490560Subject:Economic Law
Abstract/Summary:PDF Full Text Request
With the economic develops steadily and quickly, the correlated enterprise which is one of the main associations for the development of the socialist market economic becomes the main organizers of production and wealth creators. The transfer pricing is the most important strategic measure of the correlated enterprise. Generally speaking, the transfer pricing which is in the normal transactions between the correlated enterprises will not damage revenue, however, the transfer pricing which is in the non-normal transaction will be against our tax laws, and it will reduce the tax burden of the correlated enterprise, the correlated enterprises also have access to get the maximization of the correlated enterprises'profit. Income Tax Law of the people's republic of china for Enterprise with Foreign Investment and Foreign Enterprises and Provisional Regulations on Corporate Income Tax, which are called as the heaven of the tax-evasion, had been repealed on Jan 1, 2008. Meanwhile, as the merger of the two tax laws, The Law of the People's Republic of China on Enterprise Income Tax with aims to create the fair taxation has been playing an important role. It has brought out many changes to the correlated enterprise, such as the same tax rate,tax incentives,tax relief deadline and so on, which will give some new opportunities to the correlated enterprise, and all of these will lead the correlated enterprise to have new transfer pricing behaviors. Under the new tax environment, the correlated enterprise can use the transfer pricing to avoid taxation both in theory and practice. However, as the existing regulations of the transfer pricing of the correlated enterprise have too many inevitable deficiencies to be effectively carried out on the norms.This paper analyzes the transfer pricing of the correlated enterprise, it also examines and evaluates our country's existing regulations of transfer pricing, and puts off some advice of rebuilt the transfer pricing law. At the first part of the paper is the brief introduction of basic theory,system and the sorts , and then it introduces the arm's length standard which is the standard of recognizing the transfer pricing. In the second part, the paper introduces the transfer pricing laws of other organizations and countries; it also makes some comparisons between them. At this part, it pays more attention to the inspiration which the comparisons give to us. In the third part, the paper introduces the different characters of the two tax laws, and the different behaviors of the transfer pricing which are not in the same tax environment,and it focuses on analysis of the differences of behaviors of the transfer pricing which are not in the same tax environment. In the fourth part, the paper firstly introduces the damage to tax revenue when the transfer pricing have been used in the non-normal transactions between the correlated enterprise , and then it points out that there is no effective laws to regulate this action because our existing transfer pricing laws are imperfect . In the last part of the paper, it points out that it is very necessary for our country to study the system of transfer pricing law and understand the characteristics of the transfer pricing in the new tax environment, and our country also needs learn from other countries'advances to legislate The laws of the People's Republic of China on the transfer pricing to regulate the transfer pricing in the new tax environment. Meanwhile, we should learn from other countries'achievements to regulate and prevent the new transfer pricing that the correlated enterprise use to evade the taxation. The laws of the People's Republic of China on the transfer pricing will not only norm the transfer pricing of the correlated enterprise, but also standardize the official action of the tax authorities. At the same time, it should also develop the mechanisms of dispute resolution to provide the procedure safeguards for both our country and the correlated enterprise, as it believes that it is necessary for us to introduce the public interest litigation to the mechanisms of dispute resolution, which is of great theoretical and practical significance.
Keywords/Search Tags:the Law of the People's Republic of China on Enterprise Income Tax, the correlated enterprise, transfer pricing, the Laws of the People's Republic of China on the Transfer Pricing
PDF Full Text Request
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