On The Benefit Restriction Clauses In My Country's Bilateral Tax Treaties

In recent years,the issue of treaty shopping has become more and more concerned by the international community.As a special anti-abuse tax treaty rule,the role of the limitation on benefit clause has been continuously valued.Studying the specific connotation of the clause and learning its unique functions and values are helpful to think about how China can fully play its role in combating tax avoidance and protecting the tax interests of the country when using the clause.First of all,this thesis expounds the basic theory of the limitation on benefit clause,clarifies the concept of the limitation on benefit clause,explores the traceability and development of the limitation on benefit clause,analyzes the functions of the clause and concludes that China's limitation on benefit clause characterizes as low utilization rate,the explanatory notes of the Organization for Economic Cooperation and Development and the US tax treaty model are the basis for reference,making full use of multiple anti-abuse measures.Secondly,this thesis examines the international practice of the limitation on benefit clause.It mainly studies the practice of the United States and the Organization for Economic Cooperation and Development.It compares the limitation on benefit clause of US 2006 tax treaty model with the clause of US 2016 tax treaty model,analyzes the contents of the draft of the limitation on benefit clause in the BEPS 6th Action Plan.After the BEPS Action Plan reports were issued,some countries have taken new measures to address treaty shopping,hence this thesis summaries the development trend of the limitation on benefit clause in the current international society.Then,this thesis puts forward the problems in the use of China's limitation on benefit clause,including the excessive dependence on the main purpose test rules,which affects the integrity and certainty of objective test rules,there is no supporting domestic tax legal system in China's taxation legal system,a model tax treaty and specific technical explanation that suits the national conditions of the country are required to be drafted.Last but not least,this thesis proposes to improve the limitation on benefit clause in China's bilateral tax treaties.International practice has many implications forChina's use of the limitation on benefit clause.China should pay attention to the seriousness and harmfulness of the problems of treaty shopping,and implement the BEPS project results based on the interests of China's economic development,and take concrete measures to develop China's limitation on benefit clause.China shall adopt the limitation on benefit clause combining the subj ective and objective test rules,supplement the supporting legal system in the domestic laws,and draft the model and technical explanation of the tax treaty.