Raise Management Standards of Property Tax on Transnational Corporations

Ying-hui CUI, Juan WEI, Hui CHEN

Abstract



As China joined WTO, more and more foreign multinational companies will enter China. They run enterprises within the territory of China. This will inevitably play an active role in promoting the economic construction of China. But we should pay attention to some foreign multinational companies in China that often reduce the incomes of Chinese branch companies by utilizing transfer prices. Thus they achieve the goal of evading payment of duty. These make the tax revenue of Chinese Government fall sharply. So it is very important to raise management level of property tax to the multinational companies. This text explains the loss caused by the foreign businessmen using improper means to transfer prices. They import raw materials at a high price and export the products at a low price. Also the corresponding measures are made out in this paper.
Key words: Multinational companies, Import at a high price and export at a low price, Current capital, Transfer prices
Résumé: Avec l’adhésion de la Chine à l’OMC, de plus en plus nombreux sont les entreprises transnationales qui s’investiraient en Chine. Cela poussera inévitablement la construction économique de la Chine. Néanmoins, nons devons noter que, actuellement, des entreprises étrangères en Chine diminuent les profits des filiales chinoise en transférant les prix et atteint ainsi leur but d’éviter la taxe. De cet effet, les recettes fiscales de la Chine diminuent considérablement. Donc, il est très important d’améliorer le viveau de gestion fiscale à l’égard des entreprises transnationales. Cet article expose d’abord le déficit provoqué par les actions malhonnêtes de commerçants étrangers qui transfèrent les prix avec des moyens illégitimes pour acheter les ressources productives à haut prix et vendre les produits à bas prix, et propose ensuite des contre-mesures.
Mots-Clés: entreprise transnationale, acheter cher et vendre moins cher, fonds liquides

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DOI: http://dx.doi.org/10.3968%2Fj.css.1923669720060204.014

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