The Incentive Of Tax Treaty On OFDI In China

Since the implementation of China's opening-up policy,China has experienced three stages: the stage of attracting foreign investment to develop economy,the stage of simultaneous development of foreign investment and foreign investment,and the stage of focusing on the development of foreign direct investment.During the period from reform and opening up to 2015,China actively attracted foreign direct investment and transformed it into the driving force of China's economic development.With the support of China's location advantages and preferential policies,China became an important capital importing country in the world and actively participated in the development of the world economy.With China's accession to the WTO in 2001,Chinese enterprises began to actively carry out foreign direct investment with the support of the state.Even though the financial crisis swept the world in 2008,which had a negative impact on the multinational economy,the pace of Chinese enterprises' foreign direct investment has not been affected.By 2015,China's foreign direct investment flow exceeded that of foreign direct investment for the first time,realizing the transformation from net capital inflow to net capital outflow.In the following three years,China's foreign direct investment has maintained a good momentum of development,realized the net outflow of capital under the two-way investment,and demonstrated the strong development ability of China's "going out" enterprises' foreign direct investment.Under such an economic background,as an important policy tool of a sovereign state in economic regulation and control,it is not enough to focus on the scope of domestic tax distribution and management.Economic globalization and the deepening of trade between countries all urge a country to pay attention to the tax collection and management problems caused by transnational operation of taxpayers when considering the tax policies in its jurisdiction,reasonably divide the tax jurisdiction,and jointly promote the development of the world economy.Based on the previous research,this paper selects the stock of foreign direct investment of 131 countries in China from 2005 to 2017 as the explanatory variable,whether China signs tax agreements with the investee countries,whether tax concession clauses are included in the agreements,whether to sign tax agreements again in the process of tax agreement implementation as the virtual variable,the implementation time of tax agreements,and other variables As an explanatory variable,this paper studies the correlation between China's tax treaties and China's FDI.The empirical results show that the signing,renewal and implementation time of tax treaties will have a beneficial impact on the foreign direct investment of Chinese enterprises,and have a profound impact on the "going out" of Chinese enterprises.