The Research On Tax Planning Risks In China Engineering Company’s International Operation

With the introduction and continuous advancement of the Belt and Road Initiative,the cooperation and economic ties between China and the countries along the Belt and Road are getting closer,which has brought a more relaxed investment platform and a broader development space for Chinese construction companies to develop overseas markets.With the large-scale development of the global economy and the increasing investment in various countries,the global construction market space has been greatly increased.From 2016 to 2030,the global construction industry’s cumulative output value is expected to reach 212 trillion US dollars;this rare opportunity has made China’s construction enterprises’ transnational operations into a new stage;more and more construction companies in China have chosen the "Go globally" strategy to undertake various projects overseas.The current policy situation has brought great opportunities for the transformation and development of China’s construction enterprises,and it has also brought many issues.Among them,the tax issue is one of the most important issues.Tax planning has started relatively late in China,especially in the process of transnational operations,there is a lack of tax planning experience.Nowadays,countries around the world are paying more and more attention to reasonable tax avoidance,and the intensity of anti-tax avoidance has also increased,which has caused Chinese construction companies to face various unknown planning risks when conducting tax planning for transnational operations.How to reduce the tax burden of China’s construction enterprises in transnational operations,how to improve the profitability of multinational operations,and how to improve the international competitiveness of China’s construction enterprises are the keys to the success of China’s construction enterprise "Go globally".In this process,how to circumvent or reduce the risk of tax planning for transnational operations is a key issue that needs to be studied.In this context,from the perspective of economic globalization,the use of theory combined with practical methods,through case analysis,investigation and research methods,etc.,this paper takes Z Engineering Company’s first overseas project-India EPC project as research object;the first is to introduce the basic tax system and the main taxes of India;the second is to explain the implementation of the tax planning and implementation of the Z Engineering Company’s EPC project in India,and to conduct research and analysis on the risk issues faced by tax planning.The final is to make corresponding suggestions for avoiding tax planning risks in the transnational operations for Chinese construction companies.For Z Engineering Company,the following two are the effec of this paper:1)The gains and losses of Z Engineering Company’s tax planning for EPC projects in India have been summed up in a targeted manner,which can be used as a reference for the overseas project tax planning of Z Engineering Company,reduce the overall tax burden of Z Engineering Company,improve economic efficiency and enhance market competitiveness;2)Z Engineering Company has identified the risk points and countermeasures for cross-border tax planning,which will enable Z Engineering Company to rationally plan taxation in the future transnational operations,reduce the risk of tax planning,and ultimately maximize the economic benefits of Z Engineering Company.And after the case study and analysis of Z Engineering Company,a certain reference value for avoiding the risk of tax planning can be gotten,when Chinese construction enterprises are conducting transnational operations.Through reasonable and legal tax planning methods,the tax burden and planning risks of Chinese construction enterprises in transnational operations will be reduced,in order to enhance the competitiveness of Chinese construction enterprises in overseas markets.