Research On Transfer Pricing Tax System Of Intangible Assets

In the context of economic globalization,multinational corporations artificially use the loopholes of national tax systems to transfer corporate profits from countries with high tax burdens to countries with low tax burdens,thereby reducing the overall tax burden on a global scale.The tax benefits of countries around the world have affected the fair development of the world economy.At the same time intangible assets have become more and more widely used in business operations.Intangible assets such as patents and franchise rights have become the engine of new economic growth.Because the transfer pricing method of intangible assets is more subtle,the uniqueness of the intangible itself makes it difficult for tax authorities to find independent comparable transactions when conducting transfer pricing investigations,In order to face the challenges caused by the intangible assets transfer pricing,OECD released the transfer pricing guidelines 2017 based on the content of the BEPS Action Plan,followed by the release of the tax on intangible assets that are difficult to value in 2018.The Management Application Guide and the Latest Application Guide on Profit Segmentation provide new guidance for transfer pricing management of intangible assets.China's intangible asset transfer pricing tax system is not perfect,most of the transfer pricing laws and regulations are formulated for tangible assets,which makes multinational companies have the opportunity to use the loopholes of China's tax law,artificially transfer profits,erode China's tax base,and also make The tax authorities have no basis in dealing with cases related to the transfer pricing of intangible assets,and their operability is not strong.In order to change this passive situation,China should actively implement the BEPS action plan,learn from the OECD and the advanced experience of other countries in the world,improve China's intangible asset transfer pricing tax system,rationally and legally restrict and control the tax avoidance behavior of multinational corporations,and protect China's taxation rights,constantly increasing their own voice in the international arena.The main content of the first part is the background and significance of this paper.It mainly combs the definition of intangible assets,the relationship between intangible assets and tax avoidance,and the domestic and international research status of intangible assets value contribution and income attribution.After the literature has been summarized,the purpose of this paper is to give suggestions for improving the transfer pricing system of intangible assets in China.The second chapter expounds the theory of transfer pricing of intangible assets.The third chapter introduces the legislative evolution of intangible assets,and introduces in detail from the definitions of intangible assets,transfer pricing methods,intangible assets ownership and interest distribution,advance pricing arrangements,cost sharing agreements and geographical special advantages.The fourth chapter reviews the typical tax avoidance cases of transnational corporations using intangible assets transfer pricing in recent years,and selects three representative cases to summarize the three commonly used modes of multinational corporations using intangible assets for transfer pricing.The fifth chapter analyzes the intangible asset transfer pricing tax system of the United States and the OECD transfer pricing guide respectively,and concludes that the US tax system has formed a very complete transfer pricing system for intangible assets,established a regular adjustment system and made a comparison of violations.Severe punishment measures,these three experiences worthy of our country's experience,as well as the legislative experience in the transfer pricing guide for China's reference.The sixth chapter is the proposal to improve the transfer pricing system of intangible assets in China.Combined with the inadequacies of China's intangible assets transfer pricing tax system introduced in the fourth chapter,and the international experience of Chapter V,this paper improves the pricing system of intangible assets transfer pricing system,perfects the intangible asset transfer pricing system,and regulates the pricing of intangible assets transfer.The three aspects of tax management put forward suggestions for improvement.