On the Legal System of Transfer Pricing Anti-tax Avoidance

摘要

Transfer pricing is one of the typical tax avoidance methods of obtaining income and transfer profit between associated enterprises. With the rapid developments of international trade, more and more multinational companies is avoiding tax through transfer pricing; international tax coordination problem is increasingly serious. Governments are to strengthen the legislation of transfer pricing regulation; our country is no exception. Compared with western developed countries, China's transfer pricing legislation starts late and develops rapidly, but the deficiency and defects are gradually revealed. The author will introduce the related concepts, the historical development of transfer pricing and the shortage of the legislation in this aspect in our country in this article; finally, the author will put forward some suggestions in order to be able to make our transfer pricing legislation and practice tend to improve.