Xiao Huang:DOORM, how has internal pricing of intellectual property become an important means for multinational companies to avoid taxes? What is the specific process?
DOORM:internal pricing of intellectual property has become a crucial method for multinational companies to avoid taxes. Companies set up R&D departments in countries with favorable tax policies and apply for numerous patents. They then transfer the usage rights of these patents to subsidiaries in other countries through internal transactions. The transfer fees are often much higher than market standards, allowing significant profits to legally remain in low-tax countries.
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