New Challenges Encountered By Subsidy Rules Under International Taxation

Due to the benefit directly conferred by tax related subsidy and its detrimental effect to the market economy,the importance and severity of tax related subsidies had been long recognized by the international society.Under current situation,the fluctuation in international market reflected in the international trade also cast influence on many tax practices and tax rules.Some countries tend to use tax incentive to boost international investment and trade may cause harmful tax competition in long run.At the same time,multinational companies benefit from globalization and the establishment of international industry chain.After the financial crisis in 2008,the international tax avoidance become an international problems faced by national tax authorities.A domestic tax measures can affect trade,capital,service and people cross borders.The aggressive tax planning and tax authorities' incompleteness are drawing global attentions,shield more lights on the problem of tax related subsidies.Focusing on the practices of WTO anti-subsidy rules and EU state aid rules,this article examine the tax related subsidy under both regime and try to figure out comprehensive solutions to tackle this hot issue.