The Tax-related Case Study Of Transfer Pricing Of Marketing Intangibles On Multinational Corporations

The base erosion and profit shifting caused by the international tax avoidance of multinational corporations becomes a growing problem.The Organization for Economic Cooperation and Development(OECD)released the BEPS project,including 15 action plans to rewrite the international tax collection and management system,highlight more emphasis on substantive business activities,and to increase tax transparency and certainty.In the past two years,China has actively participated in the BEPS action plan.Based on the latest research results of BEPS,the State Administration of Taxation has passed regulations to better meet the international standards and regulate tax behavior.The transfer pricing,as an important international tax system,mainly involves tax breaks arising from the distribution of profits between transnational related companies.Since the marketing intangibles couldn't rightly appreciate the real value in the creation of economic benefits because of its large degree of uncertainty,it has become a particularly frequent areas of transfer pricing between related companies.This paper chooses the case of marketing intangible transfer pricing between American company and its holding company A in China.Based on the existing theoretical and practical results at home and abroad,this paper compares the basic definition of related company,marketing intangibles and transfer pricing domestically and internationally,and then combines with the provisions of the relevant tax laws and regulations of China in recent decades,for discussing whether the two companies are related,the customer list is marketing intangibles,the two companies constitute transfer pricing,and who is liable to tax in our state,to further study the current status of tax avoidance through the transfer of pricing and how to improve the regulations of tax authorities to take anti-avoidance measures.Finally,the author puts forward the opinions and suggestions on the treatment in this case,in order to provide a useful reference for handling similar cases in the light of the latest implementing system for related declaration and advance pricing arrangement in China.