Multinational Tenure Income Personal Income Tax Issues Research

As an important way of international mobility, international assignment helps China-based employer to recruit more talents to achieve their business goals. By accepting the international assignments, talents from different countries earned employment incomes in the host countries. As the host countries and the home countries may have different tax laws and systems, the incomes trigger the conflict between the tax jurisdictions of the two countries. As a result, such conflict leads to complicated international tax issues such as double taxation.In this article, the author defines the nature of the international assignment income and analyzes its impact on international tax issues caused. Then, based on the understanding to China Individual Income Tax Law and regulations, the author outlines the China's taxation on the international assignment income. Due to heavy tax burden in China, both the employer and the employee have strong desires to conduct tax planning on the income to benefit from the tax efficiency and meanwhile make sure that the tax is in compliance with China tax law and regulations. The author also compares tax planning with tax evasion in plenty of aspects and finally finds that tax planning is proved to be legal and positive. At last, the author sets out several tax planning proposals on the international assignment income. Some suggestions are also made to better tax planning's development and management.