A Study On The Regulation Of Intangible Assets Cost-sharing Agreement Tax Avoidance

With the globalization of economy and the development of knowledge economy,many multinational enterprises have used the cost sharing agreement of intangible assets for international tax avoidance.The tax authorities of various countries are facing difficulties when they investigate and adjust the tax avoidance problem of the cost sharing agreement of intangible assets,which has aroused widespread concern of the international community.This paper takes the regulation of tax avoidance in cost sharing agreements of intangible assets as the research content,analyzes and compares the guiding opinions on the management of cost sharing agreements provided by the Organization for Economic Cooperation and Development in Chapter8 of Transfer Pricing Guidelines for Multinational Enterprises and Tax Authorities(2017)with the relevant legislation on the management of cost sharing agreements issued by some countries.This paper reviews the regulatory process and content of tax avoidance in China's intangible assets cost sharing agreement;This paper analyzes the specific application of the arm's length principle,the principle of matching cost and benefits,the principle of reasonable commercial purpose and economic substance in the management of intangible assets cost sharing agreement.On this basis,this paper draws the following conclusions: firstly,Transfer Pricing Guidelines for Multinational Enterprises and Tax Authorities(2017)issued by the Organization for Economic Cooperation and Development has a broad and far-reaching international influence on the management of cost sharing agreements,and has a profound impact on the relevant domestic legislation of some countries.Secondly,although the anti-tax avoidance legal system of cost sharing agreement of intangible assets in China has been initially established,there is a lack of specific rules that are clear and easy to operate.The application of the principle of the arm's length principle and the principle of reasonable business purpose and economic substance still needs further explanation.In the future revision of the chapter "management of cost sharing agreement" in Implementation Measures for Special Tax Adjustment(Trial),we should further refine the relevant substantive rules such as the identification standard of participants,the division of expected income and the adjustment threshold,and further explain the application of anti-avoidance principles such as the arm's length principle,the principle of reasonable business purpose and the principle of economic substance.At the same time,the principle of "profits are taxed in the place of economic activities and value creation" in China's legislation should be defined as the principle that should be followed in the cost sharing agreement of intangible assets.