| Summary: | 碩士 === 朝陽科技大學 === 財務金融系 === 102 === In these years, in order to prevent the profit-seeking enterprises with relation
partiesusing transfer pricing to arrange the unreasonable distribution of revenue,
expense and profit, thereby affecting the fairness of tax of each country, most
country established transfer pricing system and regulations including the United
Stares, United Kingdom, Japan, Korea, Australia and China. Also, in 1996,
OECD formulated “Transfer Pricing Guidelines for Multination Enterprises and
Tax administrations” for every country as a reference, hope it can balance the
transfer pricing regulations of each country and avoid the competitive of the tax
bureau between every country, and effect the development of international
economic.
In 1971, refer to the American Internal Revenue Code Section 482 and tax treaty
general rule of other countries, Taiwan added the income tax act of 43-1 which
about after the Ministry of Finance of R.O.C. approved, the tax authority may
adjust the revenue and expense of a profit-seeking enterprise which the
transaction arrangements whit related party to avoid or reduce tax obligations. In
2001 and 2002, during formulated the Financial Holding Company Act and
Business Merges And Acquisitions Act of R.O.C., in order to prevent the tax
evasion, also referring to the income tax act of 43-1, but it did not determine
standard and related adjust method of Non-arm’s length transactions, so caused
lack the basis to follow between the tax authority and business enterprises.
Considered the international trading is becoming more frequently,
globalizationhas become a trend in the world. Also in recent years, many
countries also have established transfer pricing regulations. In order to make
Taiwan’s income tax act more complete and connect to international trend,
according to the Inscome Tax Act Section 80-5, the Ministry of Finance of
R.O.C. formulated and released 「Regulations Governing Assessment of
Profit-Seeking Enterprise Income Tax on Non-Arm’s-Length Transfer Pricing」
on 28th December 2004 to fairness of taxation and protect Taiwan’s tax revenue.
Keyword：Transfer pricing, Related party, Controlled transactions, Advance pricing agreements
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