A Research On Transfer Pricing Regulation Of Transnational Corporations In China

In recent years, the problem that transfer pricing brings to our economy can notbe ignored. In order to maximize their own interests, foreign investors evade taxthrough transfer pricing,which lead to a substantial reduction in taxes in our country.So it is necessary to regulate transfer pricing. but regulation of transfer pricing willlead to the reducing of foreign capital attraction which may lead to foreign capitaloutflow. It makes the government face a dilemma in the regulation of transfer pricing.How to correctly understand and decode this dilemma? The problem willundoubtedly have important practical and theoretical value.In the first chapter of this paper, it mainly introduces the background, topics oftheoretical and practical significance, the main content, the main method and theinnovation place of this research, and sorts out and sums up research status ofqualitative, quantitative, and regulatory on the transfer pricing for laying thefoundation to the research of below.In the second chapter of this paper, combining with the problems describe inthe first chapter and the research status quo of the problem, it mainly studies the waysmethods and motivation of transfer pricing in our country, then briefly illustratesadverse effects that the multinational companies using transfer pricing in China bringto, for providing complete theoretical basis for policy recommendations of the lastchapter.In the third chapter, clasping topics and purposes, it analyzes the status quo ontransfer pricing of multinational companies and has a brief explain about regulatorydilemma that our country may faces after The new Enterprise Income Tax Law of2008and Special Tax Ddjustment Measures (trial) of2009enforcement. Then, it hasa inductive analysis on relevant regulatory measures which is direct at transfer pricingand the existence of defects.Whether it is necessary to regelate transfer pricing of multinational corporation?Only without penalty or both complement and supplement? Whether it would causeforeign disinvests or influence the effect of the investment strategy of our country if increasing penalties? In the fourth chapter, it establishes the game model to solvethese problems,trying to find an appropriate regulatory measure and solving theregulation difficulties of our country.In the fifth chapter, combining with the result of the analysis, it gives sometargeted regulatory suggestions.