Coordination Of Customs Valuation And Transfer Pricing Management In China

With the development of economic globalization,multinational corporations have gained a competitive advantage by implementing transfer pricing strategies on a global scale in order to obtain more profits.The import business of multinational corporations usually involves two kinds of taxes,direct taxes and indirect taxes,which are levied by the Inland Revenue Department and customs respectively.The Customs and Taxation Departments are two independent systems.The Customs mainly collects indirect taxes such as tariffs and import-related value-added tax.It mainly adopts the ad valorem taxation method,and the duty-paid price is particularly important.The Customs determines the duty-paid value of imported and exported goods in accordance with the law,and this process is valued by the customs.According to the law,the taxation department conducts the process of reviewing and adjusting whether the business transactions between the enterprise and its related parties are in compliance with the principle of independent transactions.Due to the different adjustment systems,the customs and tax authorities of the same business may come up with two different fair prices,which will cause confusion for taxpayers.International research on the coordination of customs valuation and transfer pricing management has been conducted for more than ten years.The World Customs Organization has published the research results in the Customs Valuation and Transfer Pricing Guide and published it as a book.Under the guidance of the World Customs Organization,there are more and more relevant researches in various countries,and China has also achieved some results.In this paper,there are six chapters,comparing the commonness and difference between the two and realizing the coordination between the two is the main thrust of this paper.The first chapter briefly expounds the research background and purpose of the thesis,collates the literature of research transfer pricing management,customs valuation and coordination between the two at home and abroad,summarizes the research results and difficulties at home and abroad,and then combs the ideas,research methods,innovations and shortcomings of this paper.The second chapter introduces the transfer pricing management and customs valuation,including the core principles of the two,the legal basis,the determination of the related relationship,the method of price adjustment,the information to be submitted and the prior management measures to resolve the dispute.The third chapter,on the basis of the second chapter,makes a comparative analysis of the two from different angles,summarizes the commonness and differences between the two,and provides a basis for the coordination of the two.The fourth chapter makes a comparative analysis of the implementation of customs valuation and transfer pricing management in China through SPSS software.Through the questionnaire to collect the attention of two departments of the same problem,the data collation,using the average significance analysis and two independent sample analysis method to study the consistency between customs and tax,analysis of the actual situation in China there is a possibility of coordination.The fifth chapter explains the benefits and obstacles of the coordination between the two,which help to reduce the tax risk of taxpayers,reduce the cost of tax compliance,improve the efficiency of administration and increase the degree of trade facilitation;Obstacles include conflicts of interest between the two,lack of cooperative communication,different sources of law and shortage of relevant personnel.The sixth chapter puts forward some feasible suggestions for coordination on the differences and coordination obstacles between the two.