Tax Issues About E-Commerce

With the continuous development and gradual maturity of computer technology and network communication in recent years, another important commerce style becomes more and more striking, which results in a deep transformation of modern economic life. As E-Commerce is characterized by its openness, unboundedness, no address, virtualization, computerization, no paper, etc., conventional taxation principles began to lose its functional effectiveness and lag obviously behind in the course of levying taxes on E-Commerce, which may be due to the lack of proper taxation policies; the inadequacy of the foundation and effective means of taxes levying taxes; the greater difficulties of taxation collection, management and check; speedy raising of collecting taxes' cost, etc. All this combined to cause the running of a lot of E-Commerce tax revenue in every country. It is also the same in China.On the basis of the research findings of tax issues about E-Commerce of international society for reference, and by taking the national practical conditions into account, the author tries to put forward some corresponding countermeasureson the side of our developing countries. The following is the content and structure of my thesis.Firstly, the writer of this paper systematically expounds the influence of E-Commerce upon the current taxation, including the influence upon taxation principles, upon taxation collection and management, and upon international tax.Secondly, this paper introduces some general principles and taxation policies about E-Commerce tax issues of international society, including the taxation policies in some international organization (such as OECD, EU and WTO), some developed countries (such as USA, Canada, Australia and Japan), and some developing countries (like India and Singapore).Thirdly, in order to lay down relatively consummate E-Commerce taxation policies, the author has done some researches into these important problems: Should we levy taxes or not on E-Commerce? Should we exempt from customs duties or not on transnational E-Commerce? How to determine the permanent establishment? And how to determine the taxation jurisdiction?Lastly, after considering our taxation reality about E-Commerce, and drawing lessons from other countries, the author raises some basic principles to formulate E-Commerce taxation policies and specific taxation measures in China.