Research On International Tax Coordination Between China And The“Belt And Road”Countries

In 2013,chairman Xi Jinping put forward his major initiatives proposal about building the "Silk Road Economic Belt" and the "21st Century Maritime Silk Road" which now we call it the "Belt and Road".It is a good way to promote the development of Chinese economy and maintain the global free trade system and open economic system.Lots of global attentions has been attracted by the proposal of the "Belt and Road",after then many countries try to take part in this project.In the process of signing tax agreement,there are lots of problems that we need to solve quickly about how to correctly understand the status of tax coordination with them,how to properly response with the international tax challenges which are resulted by the regional economy,and how to improve taxation mechanisms of the "Belt and Road" by existing theory and practical results.This paper uses reviewing the literature method,empirical analysis method and comparative analysis method to write this paper.After reading a lot of domestic and foreign literature about the tax coordination,it summarizes the status of the signing of tax treaties and tax collection and management.After that this paper does empirical analysis with relevant data.Finally,there are some conclusions which were obtained by comparing the status of tax coordination.This paper starts with the basic theory of international tax coordination,introduces tax sovereignty from national sovereignty and economic sovereignty to describe the source and connotation of tax sovereignty.Then it analyzes the connotation of international tax coordination,and then from the content and subject aspects to classify the basic forms of international tax coordination.In Chapter 3,this paper summarizes the status of tax coordination.Firstly,the conclusion that the investment exchanges between China and East Asia,especially Singapore are closely linked is got by analyzing the investment situation.Then using one table to summarize the status of tax treaty signings to express that tax treaties are generally signed so earlier and the unsigned regions are mainly concentrated in West Asia and South Asia.Afterwards taking the indirect credit clause and tax sparing clause as examples to summarize the status of tax systems coordination.From these two table,the paper concludes that the signing rate of these two articles needs to be improved.Finally,it summarizes the status of tax collection and management through some examples about the multilateral conventions,tax information exchange provisions and the "Belt and Road" tax collection and management mechanism.In part of empirical research,this paper uses OFDI as the explanatory variable,using the three dummy variables which are whether it signed a tax agreement,whether it contains an indirect credit clause,and whether it contains a tax sparing clause as explained variables,and using the frontier distance score,GDP per capita,market openness,resource endowment,inflation rate and so on to be control variable.This model use panel data from 2009 to 2018 to make regression analysis.The result of regression analysis is that there are five variables have a positive promotion effect to OFDI which are indirect credit clause,tax sparing clause,market openness,resource endowment,and inflation rate of the invested country.Finally,fitting indirect credit clauses and tax sparing clauses into a new explained variables to do a regression test with the explanatory variables and control variables.As a result of this test,the new variables has been demonstrated that it can promote tax coordination.Through Chapter 3 and Chapter 4,it is not difficult to find that some “Belt and Road” countries have not signed tax treaties with China.Also the content of the agreements is not complete,and the tax collection and management coordination capacity is weak.In view of these problems,this paper advance some suggestions from the aspects of improving the tax agreement and improving the tax collection and management system.In terms of improving the tax agreement,China can give priority to Jordan,Maldives,Afghanistan and Myanmar to sign tax agreements to solve the problem about the insufficient number of tax agreements,and aiming at the problems of outdated and inadequate content tax agreements,it is suggested that China should promote the re-signing of tax agreements as soon as possible,and re-sign with countries that have not signed indirect credits and tax concession clauses,while increasing mandatory disclosure clause.In terms of improving tax collection and management,this paper put forward suggestions in four aspects: promoting the signing of multilateral conventions,consolidating the basis for tax information exchange,establishing a tax cooperation platform,and improving the tax dispute resolution mechanism.