The Perfection Of The Legal System On Transfer Pricing Of Intangible Assets In China

The author studied the basic concept of transfer pricing of intangible assets, principle and adjustment method. In addition, the author commented the United States and the OECD’s transfer pricing law system specifically. What’s more, the author combined with the newest theoretical results which BEPS action plan, reviewed the determination of intangible assets, the innovation of the economic value of belonging about the OECD, and the author also presented the current problems existing in the legal system of our country of intangible assets transfer pricing is still.From a global perspective, deviating from the average level and the larger tax policy gap among different regions caused the consequences of improper tax competition. It’s distorting the market economy on capital, technology, productivity, and other general configuration rule. By means of unfair tax competition including multinational company abusing of tax treaty and the government giving State Aid excessively, the government giving a lower tax rate called "patent box" protection policy, tax authority discriminating use discretion to audit/approve Advance Pricing Arrangement or Cost Sharing Agreement, etc. The author analyzed that the United States use LOB clauses to limiting the abuse of tax treaty, the European Union through legislation to banning excessive behavior of State Aid, etc. On those bases, the author analyzed the enlightenment of tax legal system to our country.To cope with the BEPS action plan, our country raised exploring the path of "localization". State Administration of Taxation released general anti-avoidance rules(draft)(GAAR)on in September 2015. It is one of the positive responses to international anti-avoidance cooperation in China. The author expounded the latest developments in legislation and reviewed the draft. Further, the author stated the perfection method, including avoiding treaty shopping, regulating of harmful state aids, improving the tax policy transparency, and strengthening international tax cooperation.