Research on the multinational group transfer pricing based on minimization of tax burden

When the multinational groups operate across border, there is enormous space of reducing taxation in the transfer pricing field. According to the features of producing-distributing mode and continuous processing mode of multinational groups' operating across border, around the goal of minimizing the tax burden, this paper sets up superior linear and non-linear programming models about transfer pricing, which meet the specified constraint conditions. And it verifies the validity of models through the example of Lenovo Group. When using these models to plan transfer pricing, the enterprise managers may bring into play the flexibility of models. The managers may modify the objective function on the basis of the various countries' tax systems, add or reduce or adjust the corresponding constraint conditions according to change of internal factors and limitation of external environmental in order to utilize these superior planning models to solve practical problems.