Study On The Issues For The Transfer Pricing Of Intangible Assets Under BEPS

In recent years,with the increasing volume of international trade and the enhancement of capital mobility,transnational corporations have attached more importance to the global business layout.Many transnational corporations actively conduct tax planning through transfer pricing and take advantage of tax loopholes in various countries to transfer profits to countries with low tax rate or zero tax rate,so as to reduce tax and pursue maximum profit,leading to the problem of base erosion and profit shifting in high-tax countries.In response,the OECD conducted a study and released the BEPS action plan in 2015,the eighth of which specifically addresses the use of the transfer pricing of intangible assets to transfer profits.In 2017,the OECD included this part of the action plan in the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration,to guide the transfer pricing of intangible assets in various countries.So far,the international tax system on transfer pricing has been basically improved.But in our country,in order to solve this problem,the legislative process has just begun,especially for the transfer pricing of intangible assets.And the lawmaking process for the regulations is very rough.This article aims at how to perfect the system of the transfer pricing of intangible assets in our country,mainly involving three aspects,respectively the definition of the intangible assets,the ownership,the principle of value creation and the special rules of punishment.The innovation of this paper is mainly reflected in the views of research.The three problems selected are the basis for solving other problems of the transfer pricing of intangible assets.This paper discusses not only the OECD Guidelines but also other countries' tax systems.More importantly,it reveals the problems of domestic legal systems in this field through tax laws and cases in China,and puts forward practical solutions,which is an operable idea for improving the system of transfer pricing in China.This paper is divided into four parts.The first part is the introduction.It puts forward the specific problems discussed in this paper,summarizes the important research results of domestic and foreign scholars in this field,and establishes the innovations and methods on this basis.In the second part,relevant theories of the transfer pricing of intangible assets are sorted out,including the definition of intangible assets,the basic principles of transfer pricing,ownership and value creation,and the penalty system of transfer pricing.In addition,this section also highlights the innovations in the BEPS action plan.In the third part,researching the legislation history of the domestic tax law and the development present situation in our country.Through the cases,it analyzes the tax situation of the implementation of the tax legislation and the existing disputes,revealing some problems in current tax system in China,which include the definition of intangible assets,income distribution,and penal regulation.In the fourth part,based on the BEPS action plan and the OECD Guidelines,and referring to the tax laws of Australia,India and Japan,the author studied the Internal Revenue Code and classic cases to give suggestions to the tax legislation in China.In terms of the definition of intangible assets,the author puts forward the method of combining the general definition with the enumeration definition to perfect the legislation,so that the legislation can not only ensure the comprehensiveness of the definition,but also solve the possible disputes about definition of typical intangible assets.In terms of ownership and the principle of value creation,it is important to implement the principle of comparability analysis as the foundation,research for the essence of the economic ownership.In order to make contribution to match with the profit of associated enterprises,We should be clear to legal ownership as a starting point,analyzing the associated enterprises in the role of intangible assets value realization process and distinguishing the regular compensation and surplus profits.In terms of the penalty rules,the penalty conditions,penalty proportion and the situation of exemption from penalty are fully discussed in order to establish a special penalty system.The discussion on these three issues is of great significance to the determination of specific transfer pricing methods for intangible assets,the conclusion of advance pricing arrangements or cost-sharing agreements,etc.,which also lays a foundation for the adjustment of transfer prices,the prevention of profit transfer and the protection of tax base in China.