Research on the International Coordination Mechanism of Transfer Pricing Strategy of Multinational Enterprises under the Reconstruction of Global Value Chain

Abstract

In the context of global value chain reconstruction, multinational enterprises' business environment and strategic layout have undergone profound changes. As a key strategy for multinational enterprises to optimize their global interests, the complexity and obscurity of transfer pricing strategies are increasing, which poses significant challenges to international tax coordination. This paper analyzes the international coordination mechanisms of transfer pricing strategies for multinational enterprises within global value chain reconstruction. First, it analyzes the characteristics of global value chain reconstruction and its impact on the transfer pricing strategy of multinational enterprises. It reveals the new trend and means of profit transfer by multinational enterprises using transfer pricing. Second, it analyzes the effectiveness and shortcomings of the existing international coordination mechanism in dealing with the transfer pricing problems. Based on the current international economic landscape and the development trends of multinational enterprises, this paper proposes several specific recommendations to enhance the international coordination mechanism. These include strengthening the formulation and improvement of international tax rules, fostering cooperation and information sharing among the tax authorities of various countries, and promoting multilateral tax collection and mutual assistance. This study aims to establish a fair, effective international coordination mechanism that reduces the tax advantages eroded by multinational enterprises' transfer pricing and fosters the healthy and stable development of the global economy.