Research On The Application Of BEPS Time Controlled Foreign Corporation Rules In China

The implementation of the BEPS action plan has profoundly affected the reform of taxation systems in various countries and is conducive to the promotion of all countries to jointly tackle international tax evasion and build a fair and efficient new international taxation order.In order to adapt to the development of the international economic situation in recent years,the State Administration of Taxation of China has issued a series of anti-tax avoidance management measures,and the rules of controlled foreign companies have also focused on the development of a more substantive direction.With the advancement of the "One Belt and One Road"initiative,multinational corporations have become one of the important players in international trade.Transnational flows of transactions further promote national economic development under the economic liberalization environment,but transnational taxpayers use controlled foreign companies as a A special form of tax avoidance interfered with the normal taxation order.Research and improvement of the application of controlled foreign company rules in China has become an important issue in the new situation.This article addresses the issue of controlled foreign company rules,introduces the emergence and development of this rule,and focuses on the regulation of the controlled foreign company rules in the BEPS report,clarifying the current development status of the rule,and reporting on the BEPS.The development requirements and trends of the rules in the future have been summarized.At the same time,the company's income tax law and implementation regulations issued by the State Administration of Taxation have been focused on,and the "special tax adjustment implementation measures" have mentioned the legal regulations of the rules.Combining the application status and reform trend of this rule in our country,and through the concrete situation of the internal operation of the company,we study the main problems in the application of this rule in China,and put forward possible countermeasures.he outstanding contribution of this paper lies in:Based on case analysis,it analyzes the defects in the judgment of the controlled foreign company rules on the subject of controlled foreign companies,and proposes to extend the scope of taxation subjects to resident individuals,and introduce mixed mismatch rules to prevent transnationalization.The company uses different tax jurisdictions to evade regulatory oversight advice;second is that the judgment criteria for the control criteria in the rules are not clear enough,the stock testing method is easily artificially dispersed,and the introduction of affiliate testing and presumption of all terms,the substantive test and legal test methods Flexible combination;thirdly,considering the ambiguity of the criteria for determining whether or not the company's established and obtained revenue has a reasonable commercial purpose,this paper recommends reference to the practice of OECD,focusing on the company's actual performance capacity and risk bearing capacity,and considering the scale of the company.Factors such as profitability and cash flow,comparing the pricing of connected transactions and independent transactions.