Study On Income Tax Risk Of Indirect Equity Transfer Of Non-resident Enterprises

After the reform of the corporate income tax system in 2008 and the cancellation of differential treatment between domestic and foreign-funded enterprises,non-resident enterprises became the focus of China's tax authorities.With the globalization of the economy and the increasing global integration of transnational corporations,non-resident companies are increasingly investing and operating in China,and equity trading activities have become increasingly fierce.In recent years,China's tax authorities have formulated or revised a series of policies and regulations for non-resident enterprises.Tax authorities and non-resident companies have paid special attention to tax issues.They are also the focus of research in the theoretical community and the issue of stores.While paying attention to the challenges posed by non-resident enterprises to the tax collection and management of tax authorities,their own tax-related risks cannot be ignored.From the perspective of non-resident companies,this article takes the indirect equity transfer activity as the starting point,and focuses on analyzing the non-resident companies' indirect equity transfer transactions that may encounter tax-related risks,and finally puts forward effective policy recommendations for non-resident companies.This article first sorts out the domestic and foreign research status of non-resident enterprises' indirect equity transfer related income tax issues.Secondly,it reviews the related concepts of non-resident indirect equity transfer,and elaborates the related definitions,types and processes,and their characteristics.The definition and source make a detailed explanation.Thirdly,combining the provisions of the "Notice on Non-resident Enterprises Indirectly Transferring Property Enterprise Income Taxes"(hereinafter referred to as No.7 Announcement)and related regulations on taxation and other relevant policies and regulations,there may be risks in the existing policies for the indirect equity transfer of non-resident enterprises in China.Summarized and described in terms of the income tax risk in the domestic income tax system and the income tax risk in the international tax coordinator.Then,on the basis of theoretical analysis combined with specific cases,taking the tax recovery case of BOT project company in Hangzhou Ring Expressway as an example,the tax risks involved in indirect equity transfer transactions through the establishment of an intermediate holding company will be discussed.Finally,several suggestions were put forward for strengthening the risk prevention of nonresident enterprises,mainly from the four aspects: reasonably building the equity structure of overseas enterprises,strengthening information exchange and communication,avoiding the tax risk arising from unfulfilled withholding obligations,and establishing a professional tax service team for equity transfer.Avoid tax-related risks.