Tax Risks And Countermeasures Of "Going Out" Enterprises

Risk is everywhere,and there is the possibility of loss.There will be tax risk during the operation process of an enterprise,which lead to the increase of tax liability.In recent years,China has made remarkable achievements in the development of foreign economy and trade,and the scale of Chinese contract foreign projects is expanding.The EPC mode is always an important way for Chinese enterprises to go abroad.Especially under the "One Belt And One Road" initiative,countries along the belt and road vigorously develop infrastructure construction,which brings rare development opportunities for Chinese enterprises.For contract foreign projects enterprises,due to the complex and changeable tax environment,there are higher requirements and challenges to prevent tax risk.If enterprises do not pay attention to tax risk,their tax burden will increase,which will hinder the progress of EPC general contracting projects and the development of enterprises.To help our foreign contract engineering enterprises go abroad to develop smoothly,this article selects the popular contract foreign projects country Indonesia as a case.The local tax system、 market environment of contracting construction projects is analyzed,combining with the characteristics of EPC projects,This paper systematically summed up the tax risk of Chinese contract foreign projects,including “foreign” tax environment risk(difference of tax system risk,tax benefits dispute,more uncontrollable factors),EPC project execution risk(identified as standing body,EPC contract split problem,can’t implement the preferential policies),international tax planning risk(determination of contracting parties,income tax on repatriation of profits,related transaction risks).Based on our country enterprise contracting of power plant EPC project in Indonesia,this article has analyzed policy environment,the content of the contract,the enterprise behavior,summarized possible tax risk.This paper summarizes the countermeasures of tax risk based on the treatment methods of enterprises and the final cases.From typical to general analysis idea,through theoretical analysis and case discussion,this paper puts forward suggestions on how to deal with the tax risk in the EPC project for Chinese enterprises: Enterprises should improve their internal risk prevention ability from the establishment of tax risk management system and professional team,and should also actively seek help from external forces;At the level of contract,tax risks should be reduced to ensure that EPC contracts can protect the legitimate rights and interests of Chinese foreign contracting enterprises,and attach importance to the management of tax certification documents;Actively plan the EPC project execution plan in terms of contracting subjects,contract split and profit repatriation to reduce the tax burden.