Research On The Identification Of Cross-border E-commerce Taxation Permanent Institutions

Since the 21st century,the rapid advancement of information technology has profoundly affected the development pattern of the world economy,and the digital economy that has been deeply affected by information technology has made companies in various countries have to follow the changes in consumer consumption concepts and consumption models and have begun to introduce emerging Digital economy business model.The digital platform,digital products and digital services that accompany the digital economy have created a new business model that has swept the world-cross-border e-commerce.However,while cross-border e-commerce has greatly facilitated people's lives and improved transaction efficiency,it has also brought new impacts and challenges to the tax collection and management systems of various countries.There have always been two types of taxation basis for the operating profit of an enterprise:the tax jurisdiction of the residents of the place where the enterprise is located and the tax jurisdiction of the source of income of the source of the business's operating income.That is to say,for a company's transnational business income,both the country where the enterprise is located and the country where the source of income is located can double tax.Costs have severely discouraged companies from expanding overseas.In order to avoid discouraging corporate enthusiasm due to tax conflicts between countries,countries began to agree in the tax treaties to apply the principle of permanent establishment to determine the tax jurisdiction of the country of origin.Due to the authoritative nature of the OECD(Organization for Economic Co-operation and Development)model agreement,the principle of the permanent establishment in the model has been adopted and applied by various countries,and the principle of the permanent establishment of the OECD model is therefore regarded as the traditional permanent establishment CoreHowever,the development of cross-border e-commerce relying on the digital economy has made the traditional permanent establishment principle no longer effective in protecting the tax sovereignty of the country of origin.Under the cross-border e-commerce Internet transaction model,the two parties to the transaction are no longer geographically restricted and can use the Internet to conduct transactions anytime,anywhere.In this way,cross-border e-commerce enterprises can complete transactions and generate operating profits without setting up a physical business premises.Due to the virtual nature of cross-border e-commerce enterprises,it is difficult for tax authorities to determine the location of the transaction subject and the nature of profits,and it is also difficult for tax authorities to conduct inspections The core business of cross-border e-commerce enterprises,such as warehousing and logistics,has been identified as an exception to the principle of permanent establishment by the OECD model tax treaty,which not only caused a large loss of tax revenue in the country of source of income,but also undermined corporate transnationality A level playing field for business.In addition,the problems and deficiencies exposed by the principle of permanent establishment in the rapid development of cross-border e-commerce enterprises have not only invalidated the function of assisting the country of source of income and the country of residence of non-resident enterprises in allocating tax jurisdiction,but also More and more cross-border e-commerce companies have used their inherent flaws and loopholes to avoid tax evasion by taking measures such as contract splitting and tampering with hidden transaction data.Therefore,it is of great theoretical and practical significance to study the permanent establishment of taxation of cross-border e-commerce in the digital economyAiming at the difficulties faced by the principle of permanent establishment of cross-border e-commerce taxpayers,a series of discussions have also been conducted internationally,including but not limited to modifying the scope of the definition of permanent establishment in the OECD template,introducing the concept of virtual permanent establishment,and levying Improvement measures such as withholding taxes.The OECD "Base Erosion and Profit Shifting Action Plan"("BEPS")report released in 2015 also put forward some more specific countermeasures based on the above-mentioned schemes.As a series of response suggestions made by the BEPS action are proposed to maintain existing permanent establishments in principle,they are highly operable and have been adopted and applied by many countries.This article briefly introduces the decision of the Tokyo District Court in Japan to identify an offline warehouse of a cross-border e-commerce enterprise as a permanent establishment,and new developments in Brazil,Spain,India and other countries on the establishment of a cross-border e-commerce permanent establishment.New progress of the international community's recognition of cross-border e-commerce standing institutions.This article also summarizes and summarizes the current status and shortcomings of China's current cross-border e-commerce permanent establishment identification,and proposes the author's related suggestions on improving China's cross-border e-commerce permanent establishment identification rulesAs a member of the OECD and the second largest economy in the world,the principle of permanent establishment also exists in the tax treaties signed by China,which plays a very important role in safeguarding China's tax benefits and tax sovereignty.As Chinese enterprises and Chinese products continue to go global,how to identify taxpaying permanent establishments of cross-border e-commerce becomes particularly important.However,the principle of permanent establishment in China's law needs to be improved urgently.It is not only inconsistent with the provisions of tax treaties in legislation,but also has many problems in practical application Therefore,China should summarize and learn from the beneficial experience of countries and international organizations regarding the principles of permanent establishment of cross-border e-commerce institutions,actively participate in the BPES action plan,and based on China's national conditions,seek to improve cross-border electricity under the existing legal system in China.The principle of permanent establishments.For example,when identifying permanent establishments,the scope of identification should be appropriately expanded,and restrictions and standards should be clearly applied when they are specifically applied.Second,we must actively learn from the international experience of adopting the principles of permanent establishments.Finally,we must strengthen international cooperation and actively participate in international Formulation of rules;improve and improve the tax collection system to better protect China's tax interests.