Abstract：
Using the data of more than 400 listed companies around the world from 1987 to 2014 in the Osiris Database, this paper analyzes the difference between gross profit rate and nominal tax rate among subsidiaries in and out of China for multinationals.The results show that there are two-way profit transferring activities between subsidiaries in and out of China, which are aimed at tax avoidance. The implementation of transfer pricing regulations by host countries has curbed the profit transferring activities in these countries. Those subsidiaries located in non-tax-haven countries whose parent firms registered in tax havens are most likely to be involved in the profit shifting activities with their related parties in China.
2017 
