A Research On International Tax Plannjng For Multinationai Companies

Economic globalization makes countries, enterprises and other economic agents contact more and more closely in the world market and international economy. In the conditions of fair and free competition conditions, the international goods, capital and information flow will be accelerated.It promotes the optimal allocation of resources throughout the world as well as the globalization of capital and production. Accompanied with the process of economic globalization, multinational companies play a more and more important role as a star in the world economy.The investment environment of multinational corporations is very complicated. There are different tax system and related policy requirements in different countries, and they are always changing. So multinational companies have to face a series of tax problems like cross double taxation. It makes multinational companies be in heavy burden. So multinational companies start to get attention to T international tax planning. Multinational companies set up special tax planning agencies, sometimes even hired professional institutions for the overall planning and coordination of tax payment. International tax planning makes tax reduced and overall gains. So Competitiveness has been a sharp increase in using tax planning of the multinational company. Our country’s multinational companies access to the concept of international tax planning later than others. So we do not have the experience of international tax planning. So it is necessary to study the international tax planning strategy of multinational companies in the world and provide strong theoretical support for our country’s multinational enterprises to participate in international competition in our country. Stand in the Angle of the multinational company, I began the international tax planning study from the concept, characteristics, principles, meaning and the related theory. When multinational corporations encounter heavy tax burden, we can reduce it by deep understanding of tax legal rules and reasonable use. Every country has its own tax rules. It provided a broad space for multinational company’s tax planning. Multinational companies should first consider the choice of investment location and the choice of the form of company organization when they want to invest. After the analysis of location and organization, I discusses the tax planning strategy in the process of multinational company research and development. Multinational companies could use a lot of tax planning methods in the production and sales, such as transfer pricing, tax treaty, cross-border acquisitions, leasing. This paper focus on the transfer pricing strategies. By studying international tax planning, we could find that there are o lot of problems in our country’s multinational companies. Then I discussed how to resolve them and how to plan international tax.