The Development Of Profit Split Method In The Background Of BEPS And China's Response

In recent years,the traditional transfer pricing method under the principle of independent transaction has been unable to effectively adjust the current transfer pricing situation,which is affected by the improvement of global integration of multinational enterprises and the growth of related transactions of intangible assets.In order to deal with this problem,the principle of independent transaction,as the basic principle of transfer pricing,has changed from the emphasis on price comparison to the parallel of price comparison and profit comparison,trying to match the transfer pricing results with value creation through reform.The emergence and development of the profit division method is the result of the transformation of the principle of independent transaction.Profit segmentation method is a method to determine the transfer price through comparability analysis and value chain analysis according to the specific situation of related transactions.It can provide pricing solutions when other transfer pricing methods are not applicable,so as to prevent multinational enterprises from using the differences of tax systems of various countries to transfer profits.After the start of BEPS action plan,the global tax cooperation reform and cooperation to deal with tax base erosion and profit transfer are developing rapidly.At present,the vast majority of international organizations and countries,including OECD,the United Nations,the United States and China,have recognized the profit division method as a transfer pricing method under the principle of independent transactions,and continue to expand the use of the new profit division method to promote the forward development of the profit division method.Since 2013,OECD has made a series of changes to the profit segmentation method according to item 10 of BEPS action plan,which provides guidance for tax authorities in various countries to apply the profit segmentation method.However,there are still many problems in the application standards,application technology and data acquisition.Considering the continuous improvement of the status of Chinese enterprises in the global value chain,we should speed up the research and application of profit segmentation.For our country,on the one hand,we should improve the relevant rules of the domestic profit division law,clarify the applicable standards of the profit division law,refine the use methods of the profit division law and improve the relevant supporting rules of the profit division law,on the other hand,we should improve our international influence in the development of the profit division law,and make full use of the existing rules Under the premise of international tax treaties,we should strengthen the study of regional special advantages,actively participate in the revision of the profit division law,and strengthen our voice in international tax reform and cooperation,so as to better safeguard our tax interests.