Current Situation and Countermeasure Analysis of Transfer Pricing in International Tax Avoidance

Abstract

This article introduces the main ways of international tax avoidance and points out that transfer pricing is the most commonly used means of multinational corporations. The paper briefly introduces the definition and different types of transfer pricing, then confirms that as a means of tax avoidance, the nature of transfer pricing is still in the category of not violating the law. On this basis, the article analyzes the causes of transfer pricing, and tries to find a balance between the host country and multinational enterprises by assigning and dividing different responsibilities and obligations, to achieve the common development of international economy. The key point is not simply to recommend that countries or regions strictly crack down on and prohibit transfer pricing, but to seek a method acceptable to both host countries and multinational enterprises from the basis of its creation, taking into account the interests of multinational corporations so that the problem can be solved more effectively.