The main means by which multinational companies can avoid taxes by manipulating product pricing include the following: 1. **Transfer pricing**: When multinational companies conduct internal transactions between different countries or regions, they can influence the distribution of profits by setting transfer prices. For example, they can sell products at a lower price in a subsidiary in a low-tax country and buy them at a higher price in a subsidiary in a high-tax country, thereby transferring profits to a low-tax country. This practice can reduce the overall tax burden. 2. **Profit revaluation**: Multinational companies can adjust profits by revaluing the value of certain products or services. For example, they can set higher product prices in certain countries to increase profits in that country, and then transfer funds to countries with lower tax rates for reinvestment or distribution. 3. **Service fees**: Some multinational companies transfer profits to low-tax countries by charging management fees, technical service fees, etc. For example, companies headquartered in low-tax countries can charge high consulting and management fees to their subsidiaries, thereby reducing the taxable income of the subsidiary's country. 4. **Intellectual property royalties**: Multinational companies can transfer intellectual property (such as patents and trademarks) to subsidiaries in low-tax countries and charge high royalties. This approach can effectively transfer profits from high-tax countries to low-tax countries while still maintaining normal business operations. 5. **Mergers and spin-offs**: Through strategic mergers or spin-offs, multinational companies can create favorable business structures to optimize the profit distribution and tax burden of each subsidiary. 6. **Fictitious transactions**: In some cases, multinational companies may artificially adjust profit reports through fictitious transactions or related transactions, thereby taking advantage of loopholes in the tax system to avoid taxes. It should be noted that if these practices do not comply with tax laws or international tax rules, they may face scrutiny and penalties from tax authorities. Therefore, more and more countries are strengthening supervision of transfer pricing and profit shifting by multinational companies, and multinational companies need to find a balance between tax avoidance and compliance.