International Tax Planning and Strategies of Multinational Enterprises in China

The globalization of economy brings the new opportunities of development for enterprises. The importance of tax planning to the multinational enterprises is obvious. But how to enhance the abilities of tax planning for improving the competitive power and increasing the incomes is a significant issue that the multinational enterprises must be considered constantly. The aim of this thesis is to discuss the specific tax planning strategy of multinational enterprises of China. By consulting some reference materials, this paper probes into the risks that existing in tax planning of multinational enterprises and the basis for tax planning, then gives some suggestions on tax planning strategy. By researching the relevant materials, it brings out that the multinational enterprises could take the reasonable forms of tax planning, improve the awareness of tax planning, avoid the risk in the tax planning, enhance the market competitiveness, and increase incomes, to achieve the purpose of tax planning. As the most important part of the production and management of multinational enterprises, the tax planning ability of multinational enterprises must reach a certain level so that it is more considered, more suitable for the relevant laws of domestic and overseas, and the long termed strategy of the enterprise. In the process of the tax planning of China's multinational enterprises, we should give full considerations to China's tax laws and regulations of international tax treaties, the enterprise should take reasonable tax avoidance measures according to the relevant laws and regulations, and improve the economic efficiency for laying a solid foundation of its transformation and upgrading.