The Research On Transfer Pricing Of Multinational Enterprises

With the ever-developing of globalized economy,the multinational enterprises hasbeen regarded as the main power to drive the economy further.Accordingly,transferpricing has become concerned more than ever.Consequently,the scope of the definitionof transfer pricing also has been widened not only by the taxing perspective but alsoby the managing strategy of multinational development of enterprise.The transfer pricing of multinational enterprises is actually a process in which theinterests related roles competing with each other.Thus,by global transfer pricing,thebenefits of multinational enterprises can be maximised by re-allocating resources andreducing cost.This study is aimed at analysing the competition by these interestsrelated roles under factors of income taxes,custom taxes and percentage of investmentand so on in order to work out a optimum strategy among independent interests relatedroles to maximise the benefits themselves and its parent-multinational enterprises tomaximise the benefits itself.Afterward, through the DC enterprise specific analysis of financial data thatmultinational companies transfer profits through transfer pricing there is a lot ofmargin for profit. On this basis, combinating the theoretical analysis, through analysisof some multinational companies'financial data, this paper verifys the implementationof transfer pricing and related factors.Finally, this paper summarized that Chinese transfer pricing tax system exists aseries of questions overall, and proposed the corresponding counter measures.