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The Impact And Replay For International Taxation Of The Derivates

Posted on:2010-11-30Degree:MasterType:Thesis
Country:ChinaCandidate:L ZhangFull Text:PDF
GTID:2166360272993773Subject:International law
Abstract/Summary:PDF Full Text Request
The rapid development of derivatives brought about serious problems for its taxation of profits, particularly brought serious challenges of international taxation of derivatives. At present the study in this area is still relatively insufficient in our country, and don't touch on the essence of the issues. Though some papers and works paid close attention to this on abroad, which shall be a big and hard work to analyze, review and understand. Through theoretical analysis, historical analysis, empirical research methods, author do much research on international taxation of derivatives'profits, and design the framework of the international taxation of derivatives'profits.This article contains five parts, each part in one chapter. The first part is an overview of basic knowledge, the second part gives questions, and the third part analyzes, argues, and solves the questions, which is the core of this article. In part IV, the research applies in our country, and the last part is conclusion. There is a brief description as follows:Chapter I of this article gives an introduction of the items and backgrounds of the derivatives, and describes the globe trading of the derivates and the globalization trend in our county.In Chapter II, the author does the research on the significant impacts on the existing international tax system brought by the development of derivatives, summered into seven aspects, which will be researched further in Chapter III.Chapter III is the core of this article, focus on the international taxation theory, practice and evaluation of the derivatives. Subject to the impact and challenges in Chapter II, there is depth analysis and research to taxation of derivatives, such as nature and amount of profits, tax jurisdiction, permanent establishment, withholding tax and transfer pricing. The author's opinion is that it's important to indentify the transactions motivation for the derivatives taxation, such as hedge transactions, speculative trading and tax avoidance transactions. Subject to the transactions motivation, tax authority should adopt different tax measures for the profits of the derivates. For example, the profits of the Hedging transactions should be deemed as business income, and according to permanent establishment principle, the tax authority have source tax jurisdiction. The profits of speculative transactions are included to capital gains, and withholding tax will be applied.In light of the above study and the existing development and tax legislation of the derivates, the author gives his advice for the tax legislation of derivatives.Chapter V is the conclusion of the paper, which restates the importance and urgency of the tax legislation, reviews the study of the research and set up the framework of the international taxation of the derivates.
Keywords/Search Tags:derivatives, international taxation, withholding tax, permanent establishment, transfer pricing
PDF Full Text Request
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