Research On The Optimization Of The Transfer Pricing System Within DC Group

With the development of global economic integration,the globalization of global procurement and global logistics and distribution has long been formed,and the development of the group company should adapt to the general trend of economic globalization,constantly optimize the company’s organizational structure and business model,make full use of the advantages of the global supply chain,open up the upstream and downstream industrial chain,and realize complementary advantages and resource sharing.A reasonable internal transfer pricing system can realize the rational allocation of internal resources,avoid waste and underutilization of resources,optimize the company’s business decision-making,and strengthen the company’s financial transparency and compliance,which has become an important strategic tool for the development of multinational companies.When formulating the internal transfer pricing system,the Group should fully analyze the external environment such as the external industry competition pattern,tax rate differences between countries,inflation and foreign exchange rate risks,and combine internal factors such as the company’s internal business model,organizational structure,business scale and product characteristics to match the company’s internal transfer pricing policy with the company’s development strategy.In recent years,affected by Sino-US trade frictions,global epidemics,Russia-Ukraine war and other events,the global economic development has been greatly impacted,in order to adapt to these rapidly changing economic environment,the company’s business model needs to be constantly adjusted,and the internal transfer pricing system as a strategic tool embedded in the company’s business model must also be continuously optimized to adapt to changes in the environment.Through the use of literature analysis,comparative analysis and case analysis,drawing on a large number of domestic and foreign literature research results and related concepts and related theoretical foundations of internal transfer pricing,this paper conducts an in-depth analysis of the current situation and problems of DC Group’s internal transfer pricing system,and combines DC Group’s motivation to use internal transfer pricing,so as to put forward optimization suggestions and corresponding safeguard measures for the pricing system,costing system,approve process and monitor system of internal transfer pricing.After the study of DC Group’s internal transfer pricing system,firstly,effective internal transfer pricing system optimization suggestions were put forward,which effectively reduced DC Group’s tax costs,improved the company’s profit margin,and avoided operational and tax risks;Second,through the optimization of the internal transfer pricing system of DC group companies,it can provide a reference basis for the optimization of the internal transfer pricing system of multinational group companies.