The Research On The Transfer Pricing Of MNEs

With the acceleration of the global economic integration process,multinational companies to maximize their own interests,through the establishment of affiliated companies around the world for production and management,triggering a number of international tax issues,including multinational companies transfer pricing is one of them.Transnational corporations affiliated enterprises often use the market under the laws of the high buy and sell low,the profits should be made by their own from the high tax to low tax countries and even tax-free tax evasion in order to achieve the overall tax burden of multinational corporations The purpose of minimizing the burden.In view of the transfer pricing of transnational corporations,the main transfer pricing system currently recognized or worked out by the international community is the independent trading method and the global formula distribution method.The independent trading law is widely adopted by countries and international organizations to adjust the transfer pricing system,such as the Organization for Economic Co-operation and Development and the adjustment of cross-country transfer pricing in the forefront of the United States,has always advocated the use of independent trading law as a transfer of transnational corporations Pricing behavior of the primary method,it can be said that the independent trading law has risen to an international customary law.However,with the intangible assets in the multinational companies operating in the role of more and more important,independent trading law should be intangible asset transactions reflect the characteristics of non-comparable transactions,reflecting the limitations of its application.As a result,the international community has created an urgent need to find a way to adjust to the changing pricing model nowadays,in addition to the traditional method of independent adjustment.In this context,some scholars have begun to promote the use of formula distribution in the global approach,the method can be clever to avoid the intangible asset transfer pricing to find comparable transactions,so the global formula distribution method is considered to solve the independent trading law An effective alternative to dilemma.However,it is extremely difficult for countries to agree on the distribution of the core elements of the global formula distribution,the distribution of wages and sales,and the global formula distribution is expected to be common in the world for a short period of time Applicable at this stage is only an alternative to the transfer of pricing behavior that can be effectively negotiated and difficult to coordinate in accordance with the independent trading method.In view of the current legal provisions,the Organization for Economic Co-operation and Development(OECD)or the active advocate of the global formula distribution law,the United States,is trying to adjust the pricing of transnational corporations in the framework of the independent trading law and through the continuous improvement of existing rules,Such as the "second inspection" rule,so that the adjustment of national tax authorities more reasonable.It should also be noted that,since the transfer pricing of transnational corporations is not a national law issue in a country,a tax authorities of a country have adjusted the transfer price or profit distribution of transnational corporations,resulting in another tax authorities The company is inevitably made the corresponding adjustment of the problem,resulting in whether the country should be on the transfer of pricing issues related to the request.In this regard,OECD member countries have given some experience,and Article 25 of the OECD Model Regulations provides for "mutual consultation procedures".It is suggested that the parties concerned may wish to consider properly through mutual consultation procedures.In practice,however,there are some shortcomings due to the mutual consultation process,which does not guarantee a good elimination of the international double taxation caused by the transfer price adjustment.Therefore,in order to get rid of the above difficulties,to reduce or even eliminate the international double taxation,the EU Put forward the proposal to establish the arbitration procedure as a supplement to the existing mutual consultation procedure.