Study Of Transfer Pricing On Tax Regulation

Transfer pricing is important in the finance and is an important tool to achieve its strategic goal inside the transnational associated enterprise. It is also the most important means of tax evasion. Transfer pricing tax regulation is a legal regulation framework based on tax consideration to adjust transfer pricing in associated enterprises in order to prevent tax evasion between associated enterprises in transnational corporation. It is the fundamental institution to protect our economical benefits and maintain fair competition.As a member in the world economy, it is unavoidable for our country to be puzzled by tax avoidance, which multinational enterprises take advantage of transfer pricing. To prevent damaging our country's benefit, we should perfect our transfer pricing tax regulation as soon as possible. As for the investigative actuality of the transfer pricing, the western countries, especially the United States and the Organization for Economic Cooperation and Development (OECD), are in the leading place. We can use the experience of their tax regulation and establish our own regulation by combining our reality.This article deals with the problem of the international associated enterprises and the transfer-pricing system, discusses the principles and introduces some main manner of the transfer-pricing. On the basis of those problems, the writer do the research on the international transfer pricing tax regulation, and the writer wants to give some help to the improvement the system. In the end the writer tries to analyze, standing on the government's position, the motives and damages that trans-corporations in China carry out transfer pricing, points out the defects existing in our country's supervising and controlling transfer pricing, uses for reference international advanced experience to put forward advice against trans-corporation's transfer pricing in China.