Research On The Impact Of Tax Policy On China's OFDI From The Perspective Of Tax Treaty

Since the reform and opening up,China has experienced three major stages in the field of foreign investment,mainly focusing on the introduction of foreign investment foreign investment and outward investment go hand in hand,and then pay attention to outward direct investment.From 1978 to 2015,China actively introduced foreign capital through continuous exploration and adjustment,and gradually became the largest FDI absorbing country in developing countries.Since joining the WTO in 2001,China has rapidly integrated into theworld economy to participate in overseas economic cooperation.A large number of enterprises have ‘goed out'and actively participated in international competition.By 2015,China's outward foreign direct investment even exceeded the level of foreign investment introduced during the same period,achieving net capital output for the first time,which is a historic breakthrough.Since 2015,China has achieved net capital output under two-way direct investment for three consecutive years.The development of foreign investment activities of multinational corporations in China is booming and has great potential.In this context,taxation as a policy tool of a sovereign state is far from enough to consider the tax distribution relationship of various taxpayers within its jurisdiction.The development of the world economy requires that the state should also go directly to the outside world.Considering the taxpayer's transnational business activities in investment activities,further speaking,transnational taxpayers will be subject to tax jurisdiction and taxation system in different countries.Therefore,the tax policy of the home country should be coordinated with other countries in taxation,with reasonable jurisdiction over cross-border taxation.The tax liability of the person.The signing of international tax treaties can avoid double taxation of enterprises and effectively solve the taxation relationship of tax collectors of transnational taxpayers.The purpose is not only to safeguard the tax distribution rights of various countries,but also to provide institutional solutions for multinational corporations.Tax incentives,alleviate or eliminate the problem of double taxation caused by tax juris diction,and provide solutions for tax matters of multinational corporations.Therefore,in theory,international taxation,tax preferential treatment,taxation system,etc.can reduce the relative cost of enterprises,and provide a transparent and visible tax environment for enterprises to invest abroad,thus promoting foreign direct investment of enterprises.A typical example is to respond to and support the ‘Belt and Road Initiative'.China has accelerated the signing of tax treaties with countries along the route to avoid taxation factors becoming obstacles hindering enterprises from investing abroad,to promote investment and economic cooperation among Chinese enterprises in the ‘Belt and Road' countries.On the basis of previous studies,and based on the above theoretical analysis,the author uses empirical research methods to select the country data of China's foreign direct investment from 2003 to 2016,to determine whether the country has signed a tax treaty with China in the year,The tax circumvention clause and the cumulative execution time of the tax treaty are the starting points,and other control variables of the foreign direct investment host country are selected,including political stability,investment convenience,government corruption,domestic GDP,real effective exchange rate,and taxation items.And the final consumption expenditure of per capita residents,researching the signing of tax treaties in China over the years and the relationship between the tax incentive system and China's foreign direct investment.The empirical research shows that the signing of tax treaties has a direct investment in China.Significant influence,and the longer the tax treaty is implemented with the country,the more favorable it is to direct investment in the country,and the more favorable tax circumvention credit clause does not have a significant effect on OFDI.In summary,the final conclusion is that tax treaties can encourage multinational corporations to enjoy preferential tax treatment,avoid double taxation on enterprises,and provide effective dispute resolution methods for enterprises,thereby promoting China's foreign direct investment and enhancing its quality and level.