TITLE:
A Brief Analysis of the New Trend of International Tax Planning—TESCM
AUTHORS:
Xianping Yuan, Xiaomei Ma
KEYWORDS:
Tax Efficient Supply Chain Management, Multinational, Corporation Transfer Pricing
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.6 No.2,
February
9,
2018
ABSTRACT:
With the process of economic globalization, the tax authorities of all countries pay more attention to the protection of the tax base and the contention of the tax sources. In this context, MNCs continue to optimize their global supply chain management and integrate tax optimization into it. Now, the tax efficient supply chain management (TESCM) is the most popular new supply chain planning concept in the world. This paper will discuss TESCM from the perspective of tax planning of multinational enterprises, analyze its advantages by comparing with traditional planning, and explain the application and influence of transfer pricing in TESCM. Through the study, it is believed that for China, the tax authorities should strengthen the capacity building as soon as possible to prevent and cope with the challenges. At the level of regulation, the state should gradually improve the legislation, management and operation of international tax. In the level of management, the amount and professional quality of managers responsible for international tax should be increased and advanced so that they can deal with complex cases of transfer pricing capably; on the globalization of enterprises, departments should focus on corporate transactions, compliance, rationality and independence. TESCM is both an opportunity and a challenge, which can help multinational enterprises achieve stronger competitiveness.