A Comparative Analysis of Legal Measures and Policy Recommendations for MNCs Regarding Transfer Pricing
DOI:
https://doi.org/10.54097/hbem.v16i.10609Keywords:
Transfer Pricing; Multinational Corporations; International Law; Tax Audits; International Tax cooperation.Abstract
As the global economy continues to expand, the rapid expansion of multinational corporations (MNCs) has spawned tax avoidance issues that must be resolved. This paper analyzes the challenges MNCs face with transfer pricing and investigates the legal implications of these practices under international law. The study examines transfer pricing hazards, U.S. legislative measures pertaining to transfer pricing, and the primary characteristics of U.S. tax audits. In addition, the paper provides recommendations for strengthening the international legal framework by highlighting the need for enhanced international tax supervision, cooperation, and transfer pricing management expertise. In order to achieve a balance between export tax revenue interests and sustainable development, the paper also advocates promoting innovation and providing tax assistance to global MNCs. It highlights the importance of MNCs adhering to international tax regulations in order to avoid potential tax penalties and reputational harm.
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