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Study On Legal Issues Of The Application Of 183 Day Rule

Posted on:2009-11-30Degree:MasterType:Thesis
Country:ChinaCandidate:W LiFull Text:PDF
GTID:2166360242987626Subject:International law
Abstract/Summary:PDF Full Text Request
With the transnational flow of the production factors such as goods, capital, labor, technology and information, and seeking to optimize the resource allocation,the economic globalization has a fast development. Then the interdependence relationship of each country is deepening. As to the aspect of transnational movement of natural person, transnational employment is increasing, and the following direct problem it may caused lies in the attribution of the tax levying authority in view of the income from transnational employment, which is the game between the resident state and the labor performance state on the basis of their tax sovereignty. As usual every country solves this problem through the bilateral taxation agreement which usually refers to OECD Model Tax Convention. The Article 15 of the OECD Model elaborates"income from transnational employment"within which the Article 2 referred to as 183 Day Rule is an exception clause related to the attribution of tax levying authority. Nowadays our country frequently contacts with other countries and attracts more and more foreigners to work in China, but the taxation agreement and the relative domestic legislation are still not consummate. Moreover, there is no systematic study on the issue. So the author holds that it's necessary to have a preliminary discussion on the theoretical system and the practice of"183 Day Rule"starting with the Article15 of the OECD Model Tax Convention.The thesis consists of six chapters, including the introduction, the first to four chapters and the conclusion, with the main contents as follows:The introduction part describes the background and the cause of this thesis. Chapter one gives a brief introduction. Firstly it introduces the connotation of this rule through discussing the general tax levying rule of the income from the transnational employment and the concepts and characteristics of 183 day rule. Then the historical evolution is introduced and latter the application relationship between the 183 day rule and the article16 to 19 is analyzed.Chapter two focuses on the legal analysis of identifying the"employer". This chapter begins with the interpretation principle, and then discusses the criteria of identifying"employer" from different aspects with concrete cases. Meanwhile,the chapter analyzes the issues related to the determination of the residents'identities of three kinds of employers, including the dual resident company, tax-exempt entity and the partnership.Chapter three is mainly devoted to the identification of the income from employment and the burden thereof as stipulated in the"183 Day Rule". Besides the introduction of the definition and the scope of the income from employment, it also introduces four special kinds of income from employment, that is, severance pay, stock options, sick pay and non-competition compensation allowance. Then starting with the concept of the permanent establishment, it analyzes the issue whether income from employment should be borne by the permanent establishment of the labor performance state.Chapter four emphasizes on the present application situations of the"183 Day Rule"and suggestions on the improving thereof in China. At first, it analyzes the present application of this rule in China from the aspect of bilateral taxation agreement and the relevant legislation. Then some suggestions are put forward on improving the external taxation agreement and relevant Chinese legislation.
Keywords/Search Tags:183 Day Rule, Employer, Income from Transnational Employment, Permanent Establishment
PDF Full Text Request
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