| Summary: | 碩士 === 國立中正大學 === 法律學研究所 === 99 === In recent years, due to the trend toward internationalization and globalization, the multinational enterprises reduced their taxable profits by setting transfer prices on cross-border transactions. For the sake of reducing enterprise tax burdens, planning transfer pricing among subsidiaries in different countries, which is shifting profits from country with higher tax rates to those with lower ones. Governments of many nations had set up transfer pricing regulations to avoid the companies have non-arm’s length transactions, in order to protect their taxation sovereignty and prevent tax revenue losses.
The Ministry of Finance, R.O.C. had promulgated the "Regulations Governing of Assessment Rules for Non-arm's-length Transfer Pricing of Profit-Seeking Enterprises Income Tax on Non-Arm's-Length Transfer Pricing" on December 28, 2004, by consulting OECD transfer pricing guidelines and tax law of other countries. According to the regulation, we measure non-arm's-length transfer pricing based on comparing with unrelated parties’ transactions of the same period.
This study made some suggestions on improvement of the "Regulations Governing of Assessment Rules for Non-arm's-length Transfer Pricing of Profit-Seeking Enterprises Income Tax on Non-Arm's-Length Transfer Pricing" as follow,
1. Eliminate the "Regulations Governing of Assessment Rules for Non-arm's-length Transfer Pricing of Profit-Seeking Enterprises Income Tax on Non-Arm's-Length Transfer Pricing" article 34 about penalty.
2. Set up the intangible property comparable database immediately.
3. Taiwan must sign more tax treaties with other countries. So that Taiwanese multination enterprises can conclude bilateral advance pricing agreements (APA) between other countries and Taiwan to avoid double taxation.
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