Policy Implication For E-Commerce In China

As a new form of trade, E-Commerce rose and developed since 1990's. It has both encouraged economic development and brought lots pressure on existing tax theory and tax management, the agreement on new tax theory and management adapting to the new context has not been reached yet.This thesis consists seven chapters which could be summarized into three main parts: The first part which contains chapter 1 and 2 focuses on the definition, origination, trade procedure and current situation of E-Commerce.In general way we can view E-Commerce as a collection of activities which in advantage of electronic way to gain profit. In particular way it is the collection of activities which use internet to get profit. The difference between the above is the definition to electronic commerce tool. E-Commerce originated in railway, retail trade and auto-manufacturing sectors to exchange electronic materials in U.S in 1960's. Up to 1990's E-Commerce developed rapidly in inter-enterprises and enterprises-person businesses along with the more and more use of internet. There are two kinds of E-Commerce trade, one is to sell goods through internet directly, another is to be an intermediate of the E-business. The above two kinds have their own characteristics. In China, during the past few years, whatever the number of internet users or the value of E-Commerce, were all grew dramatically, but on the other hand, the relevant sectors were rather stagnated compared to the rapid development of E-Commerce.The second parts contains chapter 3 to 5 which puts lots emphasis on the chances and challengeson tax issue along with the E-Commerce development.E-Commerce could be in favor of increasing tax source, especially in the electronic and relatedindustries, production circulation industry, e-advertisement sector, it would also promote todevelop the potential tax source in internet service sector, internet digital production trade sector,software sector and long-distance education sector.Meanwhile, we should pay much more attention on the challenge on existing tax system especiallyon the management right for tax collection and the transfer price. The definition to the nature ofdigital production trade is also rather tough.And, the challenge from E-Commerce not only on tax theory but also on tax collection andmanagement, such as uncontrolled tax source, the lost of tax-collection certification, and theunconvinced legacy for tax collection, all of these ask for the improved law support.The third part contains the last two chapters which focuses on the policy implication on E-Commerce.The thesis introduce and evaluate the foreign experiences in E-Commerce tax policy in chapter 6,then in chapter 7, it proposes the systematic tax policy for E-Commerce, concludes that the actionshould be taken to collect E-Commerce tax in case the lose of national tax source, rather than tax free policy for E-Commerce like some other countries took.