Policy Research On Beneficial Owners In China

With the continuous development of the economy,the trade between enterprises in various countries is increasing.In order to promote global trade flows,countries have signed tax treaties to reduce the impact of double taxation on trade.And tax treaties provide opportunities for some businesses to avoid tax.Enterprises choose agreements for maximizing profits through transaction arrangements and organizational changes to achieve the goal of paying less tax.In most cases,companies have chosen a better operation of the "beneficial owner" status to achieve the above purpose.In the tax treaty,the "beneficial owner" is an important concept applicable to the preferential tax rate of dividends,interest,and royalties.Exploring it will help deepen the understanding and the use of the agreement."Beneficial owner" are primarily concerned with the definition of the ultimate vesting of dividends,interest and royalties.Whether or not having the "beneficial owner" status is in the interest of the enterprises of the State party concerned.China has signed more than 100 tax treaties with other countries and regions.Tax rates that are generally favorable to negative income requirements such as dividends,interest and royalties.This article looks at the origins of the notion of "beneficial owner",discusses the change of the "beneficial owner" from the concept of law to the concept of economics,explores the meanings of the economic principle and legal principle of beneficial owner,and discusses the origin of two principle principles of "beneficial owner".As a result,the choice of the economic principle and legal principle of "beneficial owner" is not only a controversy in academic theory,but also a contention for taxation right of every country.In addition,this article analyzes the specific provisions of our country for "beneficial owner" including three policies.Analyze whether the operability of policies in practice needs to be improved and whether to give enterprises tax evasion and tax avoidance.It describes the practice of the tax authorities to identify the "beneficial owner" to discuss whether the relevant accords with the original intention of policy formulation.Regarding China's "benefit owner" policy recommendations,this paper proposes to increase the time dimension.This article believes that not only the "benefit owner" 's recognition needs to meet the time conditions,but also that the "benefit owner" status enjoys the need to have a time limit.