The Study On Using Transfer Pricing Of Intangible Assets In Export Cross-border E-commerce Industry

Based on the theory of transfer pricing of intangible assets and the analysis of tax system,this paper analyzes the case study of the typical China's export cross-border E-commerce enterprise,company A,using the intangible asset-trademark transfer pricing tool to implement the tax planning.On this basis,I have a comprehensive interpretation of the tax planning operation generally used in this industry about intangible asset transfer pricing tool and the risks.With the continuous progress of global economic integration,multinational companies using transfer pricing in tax planning has become a hot topic of concern in the practice of international economic and trade.Among them,the use of intangible asset transfer pricing is one of the most common tools in recent years.Intangible assets with its non-substantive,co-benefits,input and return unmatched advantages,make it difficult to find comparable cases and more conducive to transferring profits within the group.At the same time,export cross-border E-commerce,as a hot new industry in recent years,can promote the development of Chinese import and export of important products strongly.According to IResearch report,in 2020 the volume of Chinese export cross-border E-commerce(B2B + B2C)industry will be 12.0 trillion yuan,while the growth rate will remain at 20% or more.And the export volume by E-commerce will be as high as 42.4% of China's total exports.As one typical company of this industry,company A is faced with the contradiction between the traditional tax regulatory measures and emerging E-commerce model,as well as the difficulties of settlement and tax caused by the postal packet logistics model.At the same time,for the tax planning reasons,intangible asset transfer pricing tools are widely used.In this case,Company A transfers the profit center to HK,using the tax rate difference between 16% in HK and25% in the Mainland and combining the difficulty of pricing intangible assets.Finally,its actual tax rate is reduced to 19%.After superficial verification,company A using intangible assets-trademark transfer pricing is in line with the arm's length principle.However,to some extent,this structure does not meet China 's tax requirements for resident enterprises,so it is faced with the tax risk.At the same time,using the postal package makes the declaration process not standardized and violates the essence of trade.In addition,the imperfect supply chain management and the lack of specialized document personnel cause a hindrance to enterprises' further development which can not be ignored.In view of this situation,I make the following recommendations: 1,Increasing R& D investment,moving the profit center back to the Mainland,and applying for high-tech enterprises in order to enjoy the national tax incentives;2,Improving the logistics declaration procedures and understanding the new local customs policy actively;3,Establishing overseas warehouses to strengthen supply chain construction and making full use of the scale effect of overseas warehouses to lay the foundation for further development of enterprises;4,Carrying out transfer pricing training forfinancial personnel of subsidiaries,and enhancing the management and related personnel' expertise for reducing the risks in the process of using transfer pricing of intangible assets.