Application Of Tax Planning In The Financial Activities Of Transnational Corporations In China

The rise of multinational tax planning since China's reform and opening up, whose development begins in 1980s. In particular, China joined the WTO, many multinational enterprises to go abroad for production and management. To the company that arranges international business activities for the first time, which faces enormous pressure of competition. As complex and changing international business environment, coupled with foreign companies in management, technology and other areas, China's multinational corporations in profitability facing large challenges, to reduce costs has become a powerful weapon to grab the international market. Tax planning is a direct decreasing profit project, with no corresponding income to match. Unlike the decrease in production costs as it does not affect the company's production capacity and profitability, but it can directly increase the company's net profit. Many foreign companies has specialized tax department for tax planning, which have achieved good results. Our multinational corporations want to develop in the international market for a long-term. Strengthening of cross-border tax planning is imperative.Multinational corporations face a complex international environment, both challenges and opportunities. As multinational production and business activities in two or more countries, and because of historical nature, economic development and other causes tax laws and regulations varies in countries, which provide a planning space for multinational tax planning. This paper discusses some tax planning strategies in the financial activities of multinational corporations, combined with our multinational corporations-Yanjing Group study. It also verifies the shortcomings of tax planning of our multinational corporations, which is just from the surface layer of tax planning, not on the level from the Group's overall planning. In this article, given the unique nature of transnational corporations, we discuss the multinational tax planning. I hope to learn from China's multinational corporations. Finally, citing a number of risks that tax planning of multinational companies facing, they include transnational corporations, international environment unique to the risks and so on.This paper includes the following five parts.The first part is to tell the purpose and significance of the paper, then narrates the theoretical background of multinational tax planning. As we know the application of tax planning in Europe and America is very common. While the theory of tax planning in China is not enough.The second part firstly introduces the related concepts, including tax planning, multinational company and multinational company's tax planning, etc. Later, it tells the tax planning space of transnational corporations, characteristic of multinational corporation tax planning.The third part is the key section. It introduces some application of tax planning in financial activity of multinational companies. Take our country-Yanjing Group for example; it verifies the shortage of our company's tax planning.The fourth part lists some risks of our transnational corporations. According to the different risk, I put forward corresponding countermeasures, so as to reduce transnational corporations' multinational tax planning risks.Finally, the author points out that our country should strengthen transnational tax planning research and application, thereby better to participate in international competition.This paper adopts case analysis of research method. Take the yanj ing beer company for example. I research the multinational corporation tax planning. It can enhance the international competitiveness of our multinational companies. It combines theory and practice. Perhaps this is the novelty of this paper.