Research On Transfer Pricing Method Of Transnational Corporations' Affiliated Enterprises

With the global economic and trade integration highly development, the expansion of multinational corporations is leading to group internal trade increased. Regarding above reasons, the transfer pricing is in below dilemma: on one hand, the group internal charge between the aboard parent company and related companies directly affect the country tax revenues, and eroded the tax base; on the other hand, if the tax authorities have found that multinational companies suspected of tax avoidance, it will intensify supervision, multinational company will inevitably occur double taxation, therefore how to develop a fare transfer pricing scheme has become an important issue to multinational management.By studying the principle and motivation of the transfer pricing, the main transfer pricing methods are described and illustrated. Through analysis and calculation to the real case, “S” multinational company, we got the right and fare transfer pricing methods, and given the solutions to the proposed problems, which is the good example to other multinational companies and "going out" of Chinese companies to learn into practice, so it has a great value and practical significance.