Multinational Tax Planning Research Investment Decision

Under the trend of economic globalization，the world economy is increasinglycloser than ever, and the role of multinational corporations should not beunderestimated. Multinational corporations are playing a very significant role on theallocation of global resources, development of science and technology, refinement ofthe international division of labor, development of management methods. Since thereform and opening up in China, foreign investment has enjoyed a tremendousgrowth; the number of “out-going” enterprise also has increased rapidly.Multinational corporations use tax planning reducing their tax burden, which is aneffective method to maximize their interest. Also it is the key measure thatmultinational corporations are in an invincible position in the fierce internationalcompetition.The tax planning throughout the whole operation of multinational corporations,the excellent tax planning of investment decision is the starting point of the success ofmultinational corporations. And the overseas expansions of multinationalcorporations begin on the effective tax planning. Therefore, multinational companiespaid special attention to tax planning investment decisions.Firstly, combined with references on domestic and international tax planningdefine the concept of tax planning and international tax planning, and analyzing thecharacteristics and principles of international tax planning. And then, studying on thenecessities and feasibilities of tax planning of multinational companies, which SWOTanalysis method has been used to analyze the feasibility of tax planning, make theconclusion that multinational companies have the full conditions, and also the abilityusing tax planning to reduce the companies’ tax burden. The fourth chapter is the coreof the article. In the theoretical help of the first three chapters, chapter four majorresearch on tax planning of multinational investment decisions, which in four aspects:the use of tax policy in different countries, tax havens, company organization form and multinational companies overseas acquisitions. The chapter five, combining withthe case, research on tax planning of investment decisions of multinationalcorporations, pointing the lessons that the multinational tax planning should learn andthe attentions the companies should pay on.