On The Legislation Of E - Commerce Tax In China

In the last decade, as part of the global growth, electronic commerce, known as E-commerce, in China has been developing rapidly. This explosive development of E-commerce, however, has brought little benefit to the national finance. The lack of existing tax law for E-commerce and effective surveillance has become a barrier to the sustainable growth of E-commerce. The virtuality of E-commerce presents a great new challenge to the traditional tax policy in China. This thesis studies the current E-commerce taxation in other countries and their experience in tax legislation. It then explores the possible paths for E-commerce tax legislation in China and proposes strategies of establishing the tax system for E-commerce.Section1introduces E-commerce, including its characteristics and classification, and studies the taxability of E-commerce in China. Section2analyzes international consensus that has been reached in terms of general principles of governing taxation of E-commerce, and discuss the enlightenment to our country from a variety of principles and consensus. Section3discusses the conflict between E-commerce and the traditional tax policy in China, focusing on the key elements, including the subject and the object of taxation etc., and the implementation of taxation to explain the impact of levying tax on E-commerce on the traditional tax system. Section4proposes several general strategies for taxation of E-commerce, including the major tax principle, no double taxation, new based on the existing tax system, appropriate tax principles for direct and indirect E-ecommerce separately. This section also provides suggestions for the content and progress of the establishment of legislation.