Obstacles To Tax Among "One Belt One Road" Countries And Legal Countermeasures

Tax is a policy tool that has an important influence on economic development,and tax cooperation among countries is conducive to economic liberalization and trade facilitation of “One Belt One Road” and energizes the economy.Currently,the global system of tax governance is changing but its prospects are uncertain,which is not only a challenge but also an opportunity for the reshaping of "One Belt And One Road" international tax rules.In this paper,comparative analysis,legal and economic analysis,normative analysis and value analysis are utilized to study the obstacles to international tax cooperation and legal solutions.And based on summarizing common contradictions in global tax governance,we mainly analyze the characteristic contradiction that tax cooperation faces and then propose corresponding legal advice.First of all,this paper investigates the difficult situations that the legal systems of tax revenue suffers in “One Belt One Road” countries.As the development of economic globalization,the spillover effects of domestic tax systems in various countries are becoming increasingly obvious and hence the study of tax systems in various countries is embedded in the context of global tax governance.Starting from a global perspective,we summarize the ubiquitous problems of international tax laws,including the malignant tax revenue competition among countries,the traditionally international anti-tax avoidance barriers,the new international anti-tax avoidance barriers in the digital economy and the division of tax jurisdiction in the digital economy among countries etc.Then specific analyses are made on the characteristic problems of “One Belt One Road” tax law cooperation,that is,tax treaty issues,international anti-tax avoidance problems and standards of accreditation of permanent establishments.Then,through the analyses of obstacles to international tax cooperation above,some suggestions are proposed from a legal perspective.Firstly,tax treaty should be updated and its scope should be broadened in time,and the differences in economic structures among “One Belt One Road” countries should be paid attention to when keeping up with the development trend of economic globalization.Secondly,tax credit and tax exemption are effective methods to prevent the problem of double taxation and successful experience in global tax governance system can be universally applied to the problem of double taxation among “One Belt One Road” countries;meanwhile,the obligation that the contracting state which is a residence country must be regulated.Thirdly,in order to improve the compliance of taxpayers and fundamentally reduce the occurrence of tax avoidance,anti-tax avoidance should not only prevent the occurrence of tax avoidance results passively,but also carry out prevention before it occurs by enhancing the predictability and accuracy of anti-tax avoidance legislation and implementing the legislative and judicial principles of broad tax base,low tax rate and strict collection and management.Fourthly,to deal with the challenges in the digital economy model,it is necessary to improve the age adaption of the permanent establishments,supplying rules of the determination of labor-based permanent establishments and improve the standards for identifying permanent establishments in the Internet economy;subject to specific implementation standards and requirements,it is also suggested to introduce "virtual permanent establishments".Finally,this paper studies the current situations of tax revenue in China and other “One Belt One Road” countries and presents corresponding legal suggestions from the point of view of China to promote tax cooperation.Firstly,in the digital economy,two aspects should be strengthened,including the governance ability and level of international taxation,and the coordination and unification between China's digital economy tax system and the international tax system.Secondly,with the help of "One Belt One Road" tax collection and management to construct and enhance the ability of tax collection and management of “One Belt One Road” countries.Thirdly,as for prevention of tax legal risk of enterprises "going global",arbitration procedure can be included in tax treaty as a supplement to the mutual consultation process;meanwhile,enterprises need to raise awareness of tax risk prevention spontaneously and take full advantage of beneficial tax agreements between our country and the host country to develop a complete and flexible mechanism for dealing with to tax risks.