A Tentative Study On The Qualitative Analysis Of Transnational Income And The Tax Jurisdiction Under The Background Of E-comerence

This paper discusses international income tax issues related to the identification andjurisdiction of E-commerce. E-commerce is a kind of trade based on internet technology,consider of the borderless nature of the internet business, and the virtual nature of thesubject and location on the internet, the traditional system of international income tax lawcan not adapt to the environment of cross-border E-commerce. Most countries solve theproblem in a way which can maximize the international tax benefits. This paper describesthe traditional rules of international income identification, also introduces three theories ofthe identification and classification of international E-commerce income, introduces thedifferent practice of the developed countries such as the U.S.A., EU, Australia and othercountries,Particularly introduces the way of OECD’s practice related to the issues of theidentification and jurisdiction of international E-commerce income. The author believesthat in order to solve the problem we must firstly identify the essence of E-commerce, findthe main purpose of the transaction, secondly we should try to classify the incomeaccording to the traditional rules of international income taxation. In the other words, weshould insist on the traditional rules of international tax law, on this basis, revise theserules appropriately. The author proposes some recommendation in order to complete ourcountry’s legislation relating to the international E-commerce and the international tax law:first, we should insist on the principles of tax sovereignty, tax fairness, and tax neutrality;second, we should insist on the implementation of source of income tax jurisdiction；third，we should consociate and represent the developing countries, participate in the newinternational legal system in order to develop the new rules of international E-commerce actively, in order to realize win-win situation and purpose between tax benefits andE-commerce.