The Research On Transfer Pricing Of Multinational Enterprises

With the ever-developing globalize economics, the multinational enterprises has been regarded as the main power to drive the economics further. Accordingly, transfer pricing has become concerned more than ever. Consequently, the scope of the definition of transfer pricing also has been widened not only by the taxing perspective but also by the managing strategy of multinational development of enterprise.The transfer pricing of multinational enterprises actually is a process in which the interests related roles compete with each other. Thus, by global transfer pricing, the benefits of multinational enterprises can be maximised by re-allocating resources and reducing cost. This study is aimed at analysing the competition by these interests related roles under factors of income taxes, custom taxes and percentage of investment and so on in order to work out a optimum strategy among independent interests related roles to maximise the benefits themselves and its parent-multinational enterprises to maximise the benefits itself.There are two points presented by this study. One point is related to anti-tax avoidance, by this point, the study is trying to work out basic principles for our law-makers to formulate proper taxes regulations and also to prevent the tax avoidance attempted by Chinese-foreign equity joint venture though transfer pricing. Another point is management strategy of multinational enterprises, this dissertation is trying to study out how to exploit the transfer pricing for Chinese multinational enterprises to obtain maximum benefits globally under currently complicated international economic environment.