The Study On The Further Coordination Of Income Tax Between The Mainland Of China And Hong Kong

The thesis is studying on the further coordination of income tax between the Mainland of China and Hong Kong.The economic relationship between the mainland and Hong Kong is becoming closer after reforming and opening policy enforced in the Mainland; meanwhile, the cross-border movement of income tax's base is becoming more frequent. The conflicts of tax jurisdiction are inevitable. To ease the conflicts of tax jurisdiction, the Mainland government and Hong Kong government signed the Arrangement for the avoidance of double taxation on Income. The Arrangement allocates the right to tax between the two jurisdictions on a basis that avoids double taxation of income. But the Agreement is not comprehensive, and some items of it are ambiguous.The ways to get further coordination of income tax between two sides: to improve the coordination of business income taxation and labor income taxation; to put the coordination of investment income taxation and property income taxation into the Agreement; to improve the method of tax credit; to strengthen tax information exchange and tax administrative assistance; to establish the system of negotiation on adjustment of transfer-pricing.