Research On Transfer Pricing Of Intangible Assets In Cross-border Enterprises

Transfer pricing and price adjustment have always been the focus of international anti-tax avoidance work.With the in-depth development of global economic integration and the continuous adjustment of industrial structure,the era of knowledge economy has come,intangible assets play an increasingly important role in the development of enterprises,and because of the particularity of intangible assets,it has gradually become the main carrier of transfer pricing.Therefore,how to deal with the transfer pricing of intangible assets has become the focus of international anti-tax avoidance.In 2013,the OECD included the improvement of the intangible asset transfer pricing rules in the"BEPS Action Plan".In 2014,it formed a new result based on the "Intangible Asset Transfer Pricing Guidelines" and proposed that "taxes should be matched with substantive economic activities".The principle is to divide the income from the perspective of the enterprise value chain and have a profound impact on the international anti-tax avoidance work.At present,the idea of global value chain management of cross-border enterprises is that cross-border enterprises arrange the research and development and marketing of intangible assets in subsidiaries with low tax rates,developing countries undertake the functions of manufacturing and manufacturing,and then assign ownership according to legal ownership of intangible assets,income.In fact,this kind of profit division largely ignores the contribution and creation value of the intermediate links to the research and development,improvement,update and market reputation of intangible assets.The OECD believes that legal ownership should not be used as the sole criterion for the distribution of profits from the transfer pricing of intangible assets.In fact,enterprises that only have intangible assets but do not have substantial economic activities are not entitled to income distribution.Therefore,the focus is on the cross-border enterprise value chain analysis to judge its core competitiveness,so as to position the related functions of the related enterprises and judge the contributions made by the related parties in the entire intangible asset transfer pricing project.As the largest developing country in the world,China has attracted many overseas investments with its low labor force and broad market resources.Cross-border enterprises through global value chain management,so that domestic subsidiaries usually only get low-margin returns,most of the income is transferred to low-tax areas by using intangible asset transfer pricing,seriously harming China’s tax interests and infringing China’s tax jurisdiction.At present,the domestic tax system for the transfer pricing of intangible assets is almost blank.Although the new concept of BEPS action has introduced or updated a series of announcements and methods,it is still not systematic and detailed,causing confusion in actual work.Based on the theory of intangible assets and transfer pricing,this paper analyzes the transfer pricing behavior of cross-border intangible assets from the perspective of global value chain management.The article selects four cases,covering the classic case of international tax avoidance and the case of intangible asset transfer pricing of cross-border enterprises in China,and explores the rules and characteristics of cross-border enterprises’ implementation of intangible asset transfer pricing through global value chain arrangements.Secondly,it sorts out the relevant norms about the transfer pricing of intangible assets in the world and in China,and analyzes the loopholes in China’s policies and regulations.Then,based on case analysis and rule comparison,this paper puts forward the shortcomings of China’s current cross-border enterprises’ use of intangible assets transfer pricing tax avoidance.Finally,relevant suggestions are given according to the existing problems,including establishing the system of intangible assets transfer pricing tax system,perfecting the definition of intangible assets and standardizing the method of profit attribution,strengthening the follow-up management of cost sharing,and continuously paying attention to the BEPS plan and actively participating.