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The Conflict And Countmeatures Of International Tax Jurisdiction In The Era Of Digital Economy

Posted on:2016-05-13Degree:MasterType:Thesis
Country:ChinaCandidate:T GongFull Text:PDF
GTID:2296330479487968Subject:International law
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In the digital economy, business models by virtue of the Internet and communication technologies have become more flexible and more complex, business activities associated with a particular physical place has more chance and randomness. The intangible and mobility of the digital economy has made the connecting factor of tax jurisdiction disappear, which has brought challenges to recognize the standard between residence jurisdiction and source jurisdiction. The multinational enterprise group operates like a single global enterprise.The structure of corporate governance and independent legal entity becomes less important, while the multinational enterprise group operates with a more coordinated manner, making the best to achieve business opportunities.Meanwhile, the enterprises usually reduce the tax burden by making the aggressive tax planning, however, they didn’t voilate arm’s length principle and the conventional method of transfer pricing rule is subject to certain restrictions.The rapid development of the digital economy has surpassed e-commerce, it has begun to shake the foundation of traditional international taxation order. The traditional international tax rules are based on the principle of economic allegiance and the principle of the ability to pay. However, with the advent of the era of big data, digital economy has become the economy itself. We should understand and use the principles above dynamically and attribute the profits to the origin of economic activities and the place of value creation. By analyzing and comparing the report of Treaty Rules and E-Commerce: Taxing Business Profits in the New Economy and the report of Addressing the Tax Challenges of Digital Economy, we study the plight of the digital economy to the traditional international taxation from data, nexus, characterization of payment. Through the comparison of different solutions in different periods of addressing the challenge of digital economy, we may realise that the reform of digital economy is still exploring, however, the traditional international taxation jurisdiction rules will inevitably change, we still don’t make sure the way yet.China is both a source country and a residence country in international investment. We should pay attention to the problems of BEPS and must not follow the crowd. Take measures to the side effect of the base erosion of the digital economy and publish our tax investigation reports about the taxation of digital economy as soon as possible. We have to prevent the base erosion and profit shift. China should try to publish the report of addressing the challenge of the digital economy as soon as possible, China is a giant developing country which has specific geographical advantage. We should quantifiy and model the market premium theory and location theory in time, and determine the tax rules to safeguard our own interests and prevent the loss of tax revenue.
Keywords/Search Tags:Economic allegiance, Benefit theory, Supply-demand view, Digital Economy, Permanent Establishment, Data, Nexus
PDF Full Text Request
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