Tax - related risks of transfer pricing of multinational enterprises

Abstract

With the continuous development of economic globalization, in order to meet the different needs of enterprises in production and operation, the scale of multinational companies is also increasing, and has played a certain role in economic development. The ultimate goal of an enterprise is to maximize profits, and in order to achieve this goal, multinational enterprises usually use transfer pricing to operate. Transfer pricing has both advantages and disadvantages. Although it can help enterprises reduce tax burden, it will also produce tax-related risks, and even affect the economic development of regions or countries. In view of this situation, through the analysis of the tax risks involved in the transfer pricing of multinational enterprises, some corresponding countermeasures are put forward.