China's Transfer Pricing Law Regulation

A growing number of taxpayers are involved in the transnational business, making use of the differences or leaks of tax law of different countries to avoid tax. Thereof, the transfer pricing between multinational affiliated enterprises has been the main way of international tax avoidance, and it constitutes one of the major challenges to the tax authorities of each country. Not only the field of international tax law research, but also the legislature and tax authority attach great importance to this issue. The adjustment of the special tax (Trial) made by the State Administration of Taxation responses the achievement of researchers and establishes some new mechanisms which are operable. This thesis based on the new "Enterprise Income Tax Law" and the "adjustment of the special tax (Trial)" aims at the further research about issue of the transfer pricing, for the purpose of perfecting the adjustment.Three parts are included in this thesis:The first chapter of the thesis is mainly about the illustration of the basic theory of the transfer pricing. There are analyses about the motivation, the forms and the negative influence of the transfer pricing.The second part tries to analyze the international development condition of transfer pricing. It introduces the summary of the tax regulation of America, OECD and Japan. It also makes some comparisons between them.The third chapter is about the present situation of tax avoidance in our country. The thesis reviews the historical process of the legal system of China's anti-avoidance. And the new "Enterprise Income Tax Law" and "methods" in the new anti-avoidance provisions are introduced. Then the thesis focuses on China's anti-avoidance problems and tries to give some advices for the improvement of the tax regulation of the transfer pricing, such as advanced pricing agreements, the preparation mechanism of the files of the same period, and so on.