The Impact Of Transfer Pricing To Multinational Corporation In China

Transfer pricing (TP) is a commonly used tool in the management of Multinational Corporation. Tax planning is an important phase in financial management. How to manage the tax affairs of transfer pricing in order to reduce the rate paying risk and add more value for the company, that's a very confused and more difficult managing issue for many Multinational Corporation. The thesis is divided into six chapters:The introduction of this thesis has elaborated the background of research, motivation, methods as well as value. Chapter one mainly introduces the connotation of transfer pricing and related parties. Chapter two introduce the background and the status of tax planning on transfer pricing of Teijin XX (Shanghai) Trading Co., Ltd. Chapter three analysis the reason of implement transfer pricing on the worldwide. Chapter four analysis the international tax avoidance, separately expounding its evolving causes, its consequence and its methods. Chapter five provide concrete planning countermeasures from these aspects: Transfer pricing tax saving programming pre-arrange and tax pre-contract; Transfer pricing tax planning overall review on time and deal with Transfer pricing tax audit after the event. These include with TP tax saving programming, advance pricing agreement, advance TP tax appraisal; functional & risk analysis, obtain comparable information, make out TP amount, prepare TP documents; vindicate in the TP tax audit phase, make tax administration reconsider & lawsuit on a verdict. Chapter six make a conclusion.