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A Comparative Study On Methods To Tax Transactions Of Cross-Border E-Commerce

Posted on:2018-10-01Degree:MasterType:Thesis
Country:ChinaCandidate:J Y WangFull Text:PDF
GTID:2416330515452511Subject:International Law
Abstract/Summary:PDF Full Text Request
The developed information and communication technology has brought thriving improvement to transnational trade.However,it also makes multinational corporations easier to avoid the tax jurisdiction of source countries,by taking advantage of loopholes and gaps in different tax law systems,causing a tremendous loss of revenue to governments.In response to challenges brought by the digital economy,the Organization for Economy Cooperation and Development(OECD)launched an Action Plan on Base Erosion and Profit Shifting(BEPS)in 2013 to identify and analyze issues raised by digital economy and figure out possible solutions.Meanwhile,in order to break through the traditional conditions of taxation,some states in United States of America have come up with some unilateral and joint legislations which are discussed also in the Congress.This Article compares both of the methods mentioned above,examines them on the basis of the Ottawa Taxation Framework Conditions bought by OECD in 1998,suggests to resolve the digital challenge by a digital solution that is to design a taxation system with the 'significant economic presence' as the new nexus and the withholding at source by the use of taxation software.This Thesis begins,in Chapter ?,by introducing the conservative position OECD used to take and the recent changes in the taxation of the cross-border e-commerce,especially the amendments of some articles and the concepts of significant economic presence,withholding tax and equalization levy in the BEPS Action Plan 1 and 7.Chapter ? discusses the legislative efforts made within U.S.,and focuses on the Streamlined Sales and Use Tax Agreement and the Congressional process regarding the agreement,and how these indicate the possible solutions to a broader field.Chapter ? looks at the comparison of solutions by OECD and the frame of Ottawa Taxation Framework Conditions,and brings up the main thinking of this Thesis,that is to combine the considerable merits of both.The last Chapter proposes the Chinese arrangement to tax cross-border e-commerce in its 'One Belt and One Road' strategy,and several other measures China should consider to response to the challenges of taxation brought by the digital economy.
Keywords/Search Tags:BEPS Action Plan, a significant economic presence, SSUTA
PDF Full Text Request
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