1. Transfer pricing tax avoidance: Multinational companies use transfer pricing below or above the market price to transfer profits to countries or regions with lower tax rates through transactions between affiliated enterprises, thus reducing the overall tax burden.
2. Tax avoidance by tax treaty: multinational taxpayers use the preferential clauses in international tax treaties to enjoy the tax preferences of treaty countries and reduce the tax burden by fictionalizing or truly changing their income sources.
3. Use international tax havens to avoid taxes: Multinational companies choose to set up companies in countries or regions with low tax rates and loose tax policies, or transfer profits to these regions, so as to achieve the purpose of tax avoidance.
4. E-commerce tax avoidance: With the development of e-commerce, multinational companies transfer their income to countries or regions with weak tax jurisdiction through online sales to avoid tax supervision.
Precautions for tax avoidance:
1. Abide by laws and regulations: tax avoidance must be carried out within the scope permitted by law and cannot violate national tax regulations and policies. Therefore, before tax avoidance, we need to have a full understanding of relevant laws and regulations.
2. Reasonable tax planning: tax avoidance requires reasonable tax planning according to its own actual situation and needs. This may include choosing appropriate tax incentives, investment structure and asset allocation strategy.
3. Update information in time: tax policies and regulations will change with time and circumstances, so it is necessary to pay attention to and update relevant information regularly. If you don't know the latest tax policies and regulations in time, you may miss some important tax avoidance opportunities.
4. Avoid excessive tax avoidance: Although tax avoidance is a legal means of tax management, if it is used excessively, it may cause suspicion and investigation by tax authorities. Therefore, it is necessary to maintain moderation in tax avoidance and ensure that all operations are transparent and traceable.