There are several ways that companies can reduce their tax costs through tax avoidance arrangements and complex financial structures: 1. **Transfer pricing**: Multinational companies can transfer profits from high-tax countries to low-tax countries by setting prices for internal transactions (i.e., transfer pricing). This means that companies can set prices for goods and services between different subsidiaries to transfer profits, thereby reducing the overall tax burden. 2. **Utilization of tax agreements**: Many countries have signed agreements to avoid double taxation. Companies can choose to set up subsidiaries in favorable countries or regions by reasonably arranging their business structures. For example, choosing an offshore region with low or no tax rates as the headquarters can effectively avoid taxes in high-tax countries. 3. **Financial instruments and derivatives**: Companies can use various financial instruments (such as debt, derivatives, etc.) for tax planning. For example, by debt financing in high-tax countries and investing in low-tax countries, interest expenses can be deducted, thereby reducing the tax base. 4. **Management of intellectual property**: Companies can transfer their intellectual property (such as patents and trademarks) to low-tax countries and charge high fees to subsidiaries in other countries in the form of licensing fees, thereby reducing the tax burden. 5. **Offshore companies**: Many companies choose to set up companies in offshore financial centers, which usually enjoy preferential tax policies. Companies can invest or hold assets through these companies to achieve tax optimization. 6. **Tax incentives and subsidies**: In order to attract foreign investment, some countries will provide various tax incentives and subsidies. Companies can choose to invest in countries with lower tax rates according to the policies of different countries. 7. **Mixed financial structure**: Companies can design mixed financing structures, such as a combination of loans and equity, through the laws and regulations of different countries to achieve tax optimization. 8. **Supply chain optimization**: By reasonably configuring the global supply chain, companies can optimize the flow of products and services between different countries, thereby reducing operating costs and tax burdens. In short, companies that use tax avoidance arrangements and complex financial structures to reduce tax costs on a global scale must comply with laws and regulations, avoid illegal acts, and adopt compliant planning methods. At the same time, tax authorities in various countries are also strengthening supervision of transfer pricing and tax avoidance arrangements, and companies need to consider carefully when formulating relevant strategies.