The Research On Income Tax Jurisdiction Under The Multinational Electronic-Commerce Conditions

The Electronic-commerce developed swift and violent. The new situation has challenged traditional Income Tax Jurisdiction including the Principle of Territoriality and the Principle of Person. The first one is about the Permanent Establishment of the Tax Jurisdiction over the Territoriality. We think that the Internet Server can be considered as a Permanent Establishment when the conditions exit, but the Web Sites can't be. The second one is about the Tax Jurisdiction over Residents. It is very difficult to define the legal person's status under the E-commerce conditions.We must set up new frame for global E-commerce Income Tax Jurisdiction. Firstly, the Principle of Neutral Tax, the E-commerce should be treated in a similar way to traditional commerce and emphasizes the need to avoid levying new tax or no levying tax. Secondly, the traditional rule must be observed. Thirdly, it is necessary to strengthen the international co-operation.Under the E-commerce conditions, it is important for China to put some measures into effect.