A study of transfer pricing regulations of ROC of intra-group service of multinational enterprises

• Main Authors: Wu Chung hui, 吳忠暉
• Other Authors: Wang Hsing-wen
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/69690163079370342760

碩士 === 國立彰化師範大學 === 企業管理學系國際企業經營管理 === 96 === Abstract It will become necessary and frequent that multinational enterprises（MNEs） provide service of administration，technique，finance and business strategy for related parties to promote function of internal management，coordination and control of entire group. And MNEs contribute to global economy as more and more important，in order to enhance operation efficiency of the company，MNEs should give help for operation of subsidiaries and support their finance，in addition，convenience and timeless of post-sale service for continual operation is more significant besides differentiation of product and cost-leadership. Therefore，the associated enterprises support each other is a frequent activity of internal service，but which activity of intra-group service except stockholders has to charge and how to establish price so that controlled transactions are compatible with arm’s length principle as uncontrolled transactions，in the past，most of countries didn’t pay attention to this part of regulations，contributed to affect the tax revenue and fairness of tax levies . Intra-group service is an activity which all MNEs have to be occurred，and different from transfer and use of tangible and intangible asset. Therefore，to enhance the price of product and service and keep up the loyalty of customer are main key points of success of company，and the trend of transfer pricing will focus on the subject with respect to intra-group service in future. With problem of intra-group service of transfer pricing which be occured，this study finds out some weakness of the Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm’s Length Transfer Pricing of ROC by documentation research and case study，and insufficiency of intra-group service of transfer pricing system by analysis and comparison. Due to these reasons，this study submits some suggestion as follows：1.Establish cost contribution agreement system，by way of implementation of advance agreement system based on both of tax authority and tax payer，so as to avoid disputation after then.2.Make criteria of intra-group service to be recognized for both of tax authority and taxpayer easy to follow.3.Suggest to amend law to prohibit accrued profit of intra-group service hidden behind other transaction term，and taxpayer shall charge it alone in order to make the complexity of transfer pricing to lowest.4.MNEs shall file「checklist of intra-group service」as filing tax return to make sure the existence of intra-group service. Keywords：Transfer Pricing, intra-group service