Research On Cost - Sharing Agreement Of Intangible Assets In BEPS

After the economic crisis of 2008, there is new revolution in the field of international taxation. Avoidance of double non-taxation and Base Erosion and Profit Shifting become the focus of international tax cooperation. Multinational corporations, especially the multinational related enterprises’ intending to transfer profit through tax havens or transfer pricing is not acceptable by many states. So the compliance of enterprise operation is facing huge challenge.The intangible assets have the characteristics of originality and concealment, which means that Base Erosion and Profit Shifting is more easily happen in the era of Digital Economy. Therefore, states increase their transfer pricing investigation. However, as a compliance tool for transfer pricing, cost sharing agreement will provide a useful reference for enterprise standardization management and risk prevention and control, if the research and development of the intangible assets and the joint use of the intangible assets apply to the multinational enterprises.From the perspective of anti-avoidance and standardized management,this paper focuses on the issue of the cost sharing agreement of intangible assets. Firstly, this paper introduces the basic theory of the intangible assets and the cost sharing agreement, and studies the arm’s length principle and match the risk and return principle. Secondly, it focuses on the principle of using the CSA to carry out the tax avoidance, pays more attention to the operation status of the policy of the intangible assets CSA in China, and studies the institutional and procedural issues in the application of the CSA of intangible assets in China. At last but not least, from the angle of the systems and procedures, it will put forward reasonable suggestions basing on the experience of other counts, which will involve “Cash Box Entity”, comparability analysis, APA and simultaneous tax documentation.But the institutional and procedural issues of international taxation can’t be separated from the tax cooperation of various countries. The establishment of exchange of tax information is the key to solve the problem of the simultaneous tax documentation. So, to build the system of tax information as soon as possible is of great significance to improving the tax transparency, solving the problem of the CSA of intangible assets and fighting against the BEPS.