The Study Of China's Countermeasures Under The New Situation Of International Tax Competition

In the June 2017,China signed up the ‘Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting(BEPS)' with other more than sixty countries and regions,which is a new achievement of International Tax Coordination.In December of the same year,the U.S.President Trump signed ‘the Tax Cuts and Jobs Act',which evoked a trend of income tax rate reduction over the world.This trend led by the United States and the sign of Multilateral Convention has formed the new situations of International Tax Competition.In this situation,governments of all countries are faced with two options: joining the tax reduction competition to maintain the tax competitiveness,or doing nothing in order to guarantee a stable tax environment.Faced with the new complex situation of international tax competition,how to ensure our country's tax base,even to attract other countries' tax base,is an important research issue for our government.In the context of economic globalization,with the increasing movement of elements inter-country,countries with more tax preference policies can easily attract the inflow of capital,technology and other factors,which will make the economy increase.However,Improper International Tax Competition not only do harm to Domestic welfare,also to International Tax Fairness.In order to help to resist the harm of improper international tax competition in the new situations,this thesis discussed the deficiencies in the formulation of international tax competition policies.And corresponding solutions were also presented.Firstly,fundamental theories of international tax competition were concluded;secondly,the new situations of international tax competition were explained,and the problems encountered by our country were also presented.Afterwards,directed by the theories of historical and logical analysis,evolutions of international tax competition policies of the main economies were discussed.And then tax reduction policies of countries in this new situations were analyzed.Finally,four suggestions for our country to cope with the complex situations were presented.While reducing the tax rate of enterprise income tax,to optimize tax preferential policies and adjust the structure of fiscal expenditure,is the new point of the thesis.Combining the actual situations of our country,reducing the rate of added-value tax in some industries can cut down the proportion of indirect tax and improve the structure of tax system.Under this premise,the suggestions can increase the stability of fiscal revenue,while maintaining a moderate proportion of indirect tax and direct tax.