A Legal Study Of Identifying Royalties In The Context Of Transnational E-commerce

Since entering the 21st century,the economy of the world has a huge development.As the study data shows,the international technology transfer for the content of the proportion of transactions is increasing in the cross-border trade while increasing the ratio of the trade of the transnational royalties.Due to the different taxation system for the income of the cross-border exchange,it is particularly important to identify the character of the income of the cross-border exchange.But with the development of cross-border e-commerce transactions in the virtual field,a series rules of identifying the income of the cross-border e-commerce transactions is attacked which bringing a new challenge for the identifying of the royalties.Therefore, further harmonization of the application of national law and Tax Treaties, tax reform and improvement of royalties become a national priority to improve tax law system.Theoretical analysis was designed to serve the practice,therefore,this article is proposing to give some rationalization proposals for the improvement of the legal system in the royalties identified areas through organizing the practice of the representative nations in addressing those problems based on the theoretical analysis.This article is divided into five chapters,the first chapter introduces the concept and scope of the royalties from the OECD Model Tax Convention and the UN Model Tax Convention angle and makes a general rule to recognize the royalties in the traditional economy;The second chapter summarizes the problems of identifying the royalties under the transnational e-commerce including the impact on the income classification of cross-border e-commerce and the challenges of the permanent establishment principle about the royalties problems;Chapter Ⅲ gives a comparative study of international organizations as well as representatives of national practices to resolve the royalties identified problems of cross-border e-commerce and discusses its position and to comment; the fourth chapter describes the current Chinese legislation of royalties identified, made our country weaknesses of the current legal system, and proposes to give some advice to improve our domestic tax law and the tax treaty; The fifth chapter is the conclusion to summarize results of this study.