International Tax Jurisdiction Issues In E-commerce Environment Research

In the history of humans, every technical revolution will bring a improvement of economies. Of course, Internet is the same. As a whole new commercial mode, electronic commerce has its inherent advantages over traditional mode. Therefore, from the beginning, e-commerce has conquered the world with an incredible speed. As the specialists forecast, the total amount of e-commerce trading will be beyond two thousand billion.Contrasting to the developed countries, China is only at the beginning in this field. However, e-commerce, which stands for the future direction of international commerce, will influence the status of China in the globalizing economical and technology competition. So the duty of China's government is to create a good environment for e-commerce.E-commerce not only depends on the construction of informational basic establishment, but also the favorable legal environment. Writings about regulations in e-commerce have published one by one recently. These articles discuss the legal problems related to e-commerce including electronic signature, digital evidence and so on. But there are few remarks on the topic of international taxation. However, international taxation jurisdiction concern about the attribution of taxation benefit around the world. Especially at the procession traditional commerce transmitting to e-commerce, the world is discussing the new rules in this field. If China joins in studying and pronounces its ideas, she will be the creator of future rules but not only an observer. This will be very essential to China's development.In this paper, the author start with analyzing the challenges to the traditional international taxation law, then specially discuss the focus on this field. At last, he gives some advice to China. The paper is divided into four parts.In the first part, the author analyzes the nature of income in e-commerce. Upon the valuation of some plans in the world, the authorconcludes that the principle in this problem should be "substance over form". Then he specific divides the income by business, byThe second part is about the "place of effective management" principle. The author firstly definitely defines this conception, and then gives the countermeasures to this question. He concludes that it is wise to combine the method of improvement with the Hierarchy of Tests.In the third part, the author discusses the application of "permanent establishment" principle. First is the challenges brought by e-commerce. Secondly, he analyzes the natures of server, web site and ISP on the base of comparing three popular plans in the world. The last point is the attribution of profit from PE.In the forth part, the author gives some advice about China in this scope based on introduction of some foreign policies, mainly about the definition of the conception, taxation management, international cooperation, etc.Because there is not a comprehensive system on the related problems, the author mainly borrows the ideas from foreign theories. Based on material analysis, the author gets the conclusion or advances the advice, and also gives response to the former discussion related. Wish to do some help to China's choice in this field.