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Tax Normative Research On Multinational Companies Transfer Pricing Of Intangible Assets

Posted on:2014-07-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y Y ShiFull Text:PDF
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Along with the development pattern of global economic integration, moremultinational companies in the world to carry out multi-angle multi-azimuth businessactivities. As a driving force for promoting China’s economic advance, the role oftransnational corporations can not be ignored. However operating costs minimizationand after-tax profits maximization are the fundamental goal of business, anycompanies are no exception. multinational companies, with their strong cross-borderproduction and marketing advantage to seize the world’s major national taxdifferences, in particular, are quite different in the tax rate, to implement multiplestrategies to transfer profits, avoiding taxes, in order to seek their global layoutoptimization. Transfer pricing is the classic strategy of multinational companies usinga high frequency of a resource allocation.Transfer pricing occurs frequently, resulting in a great loss of national taxrevenue, the problem has become the focus of the world’s major countries, a numberof countries, including China, have also made the corresponding tax regulations. Therapid development of the knowledge-based economy, new changes of the assetstructure of transnational corporations also have been taken place, intangible assetshigh rate of return, high-yield gradually make it beyond the tangible assets becomethe main driver of the value-added of the corporate assets. Intangible assets have nophysical form, it is difficult to find similar goods on the market, the value lack of comparability, therefore multinational companies prefer to use affiliate insider trading,manipulate the transfer of intangible asset pricing, to avoid taxes which they shouldpay.In recent years, the phenomenon of transfer pricing of intangible assetstransfering profits has shown signs of multiple trends, as the largest developingcountry in the world, but also the tax China, China’s transfer pricing law are numerous,but are basically aimed at tangible assets,to develop more comprehensive provisionsfor tangible assets, but almost did not specifically deal with the terms of the intangibleassets transfer pricing norms. In order to maintain normal market order and safeguardthe legitimate interests of other investors, a sound transfer pricing laws andregulations, especially perfect intangible transfer pricing laws and regulations systemare very necessary and urgent.This article is based on the above background, and writing some usefulrecommendations to improve the legal system of China’s tax revenue. The articlebegins with the transfer pricing concept and intangible concept, described the natureof the intangible assets, value composition and basic characteristics, describes thecore principles of intangible assets transfer pricing-the arm’s length principle toexplore the transfer pricing of intangible assets used ways and their respective applies.The introduction of the relevant provisions made by the United States and the OECDtransfer pricing of intangible assets as of Taxation Legislation reference. Detailedanalysis of the legal changes in the tax system of transfer pricing of intangible assets,pointed out the present status of intangibles transfer pricing in our country and theproblems that exist in the tax system in the specification. On this basis, multinationalintangible transfer pricing response measures proposed to improve China’s intangibleassets transfer pricing tax system feasibility of the program focuses on the preventionand adjustment from a legal and practical levels.
Keywords/Search Tags:Intangible assets, Transfer pricing, Internationaltax avoidance, Tax norms
PDF Full Text Request
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