A Study On Transfer Pricing Of Multinational Digital Enterprise

In the context of economic globalization,the tax base erosion and profit shift(BEPS)has become one of the hottest tax topics in the world.After systematically reviewing the background of international taxation order and combing the practice on BEPS of major countries and international organizations.This article discusses how China strive to achieve the modernization of international tax,putting forward of promoting China's international tax discourse in order to establish a new international order of fair and reasonable tax,strengthen the construction of tax sovereignty countries to prevent tax loss and maintain cross-border tax balance.This article is divided into four chapters.The first chapter is the foundation of the article.Firstly,it elaborates the basic concept and theoretical issues of the digital enterprise and transfer pricing,emphasizes the close connection between the digital economy and the digital enterprise and the globalization of taxation under the digital economy.Secondly,the author puts forward the basic principles and basic methods of adjusting transfer pricing,especially on the arm's length principle,several adjustment methods and pre-arrangement mainly used by developed countries.The second chapter is the focus of the article,which aims to study the tax challenges brought by transfer pricing of multinational digital enterprises,analyze the legal issues arising from such transfer pricing.The first issue is the value of assets is hard to be determined as a result of the development of sharing economy,which is the basis of adjusting transfer pricing.Besides,the digital products or services provided by the enterprises are part of the intangible asset;Second,the multinational digital enterprises use their global industrial chain for resource restructuring and making tax planning,the profits transferred through the intangible assets by internal enterprises,which led to the arm's length principle cannot be effectively followed;Third,the data information,cloud technology and other information and communication technology applications,leading to the confusion of defining the connection factor,the source country losses the reasonable basis to exercising tax jurisdiction due to the invisible and mobility of data.The third chapter is the characteristics of the article,making a comparative analysis of foreign digital enterprise transfer pricing tax problem of the digital economy.Select the countries on the one hand,because of the digital economy is relatively developed,with related research and the collection and management experience;On the other hand because of its national digital economy development strategy is clear,the corresponding digital economy tax policy has a strong reference.Especially in the developing countries represented by India digital economy tax policy and attitude,has more significance for our country.The fourth chapter is the ultimate goal of the article,putting forward the proposals and strategies on dealing with transfer pricing our country under the digital economy.This chapter is discoursed from two perspectives--domestic and international.From domestic perspective,author analyzes the current transfer pricing legislation system,and make a proposal for further improvement on tax legislation of intangible assets transfer pricing,such as establishing a special transfer pricing system for intangible assets and perfecting the adjustment method of transfer pricing of intangible assets,and rational distribution of profit attribution and value contribution in the process of transferring and using of intangible assets etc.;from international perspective,it is recommended to actively participate in international tax rules discussion,strengthen international tax information exchange,and continue to promote the negotiations and execution of international tax treaties,to serve the country "One Belt One Road " development strategy.