Challenges And Solutions Of Digital Economy To Tax System And Administration In China

Digital economy is called the "fourth scientific and technological revolution",because it represents the new trend of economic development and the development direction of advanced productive forces.In human history,every scientific and technological revolution has promoted industrial transformation and institutional innovation,which not only affects the original resource allocation,but also generates new economic forms.Digital economy is no exception.The progress of digital technologies such as the Internet,artificial intelligence and cloud computing has promoted the development of digital economy.In this process,digital economy has promoted the digital and intelligent transformation of traditional industries,and accelerated the transformation and upgrading of intelligent agriculture,intelligent manufacturing and intelligent transportation industries.At the same time,the digital economy has also spawned the emergence of new formats such as network broadcast and gig economy.Both the innovation of traditional industries and the emergence of new economic forms of business have brought impacts on the tax system and tax collection management based on industrial economy.China’s digital economy is developing rapidly.By 2020,China’s digital economy totaled39.2 trillion yuan,6.7 percentage points higher than GDP growth in the same period,and will grow further in the future.With the rapid development of digital economy,China’s tax system is constantly impacted,which is bound to require the reform of the traditional tax system and administration system.Only when tax problems are clearly identified can targeted reform be carried out.However,at present,domestic scholars pay more attention to the challenge of digital economy to the international tax system,and less attention is involved at the domestic level.Therefore,this thesis will focus on domestic research,analyze the domestic tax problems brought by digital economy,and then put forward reform suggestions.The main research contents are as follows.Firstly,the thesis introduces the concept,development and theoretical basis of digital economy taxation.Since the word digital economy was put forward,it has triggered people’s discussion on the concept of digital economy.This thesis summarizes some of the viewpoints that have been put forward at home and abroad,and then gives the concepts adopted in the discussion process.Based on the definition of the concept,this thesis summarizes and expounds the characteristics of digital economy,such as data dependence,fluidity,virtuality and platformization,and briefly summarizes the development status of China’s digital economy.Then it discusses the theoretical basis of digital economy taxation from the three core principles of tax revenue,equity and efficiency.Secondly,the thesis discusses the challenges brought by digital economy to China’s tax system.In terms of tax objects,the development of digital economy has broken down the barriers between traditional industries,resulting in a certain ambiguity in the classification of taxable items of VALUE-ADDED tax and income classification of individual income tax.The nature of tax objects is not clear,and it is difficult to accurately and reasonably divide the tax base of each business.At the same time,the emergence of new objects or objects under the digital economy,such as digital currency and data resources,has triggered people’s discussion and research on whether the new objects should be regarded as tax objects,and the scope of tax objects is controversial.At the level of tax payment place,due to the development of digital technology and the characteristics of the platform of digital economy,the transaction place is virtualized,which breaks through the physical limitation and makes it difficult to determine the tax payment place.The digital economy is highly mobile,which makes the scope of transactions unprecedented.There may be inconsistencies in the places where enterprises are registered(or where institutions are located),the places of production and consumption,which leads to the transfer of tax benefits between regions.Thirdly,starting from the four collection and management processes of tax registration,invoice management,tax collection and tax inspection,this thesis studies the disadvantages existing in the collection and management process of our country.In the aspect of tax registration,the trend of "individualization of production" in the field of digital economy,and the natural person is not the subject of tax registration,has affected the tax authority’s tax source management of natural person.Although "E-commerce Law" provides for the circumstances of individual tax registration,there are still unclear areas,which need to be refined.In terms of invoice management,relying on modern information network technology,the virtual characteristics of economic activities are increasingly prominent,the authenticity of invoices is not easy to judge,and the existence of non-invoice also reduces the effect of "tax by invoice" mode of collection and management.In the aspect of tax collection,the lack of qualification of tax collection and collection by the entrusted tax authorities has affected the collection and withholding rate of some individual income taxes.In terms of tax inspection,tax data are scattered among various departments,and the depth and breadth of data sharing are limited,which increases the difficulty of case selection for inspection departments.At the same time,the characteristics of electronic transactions and trans-regional operation under the digital economy make the traditional tax inspection methods need to be further improved.Finally,the thesis puts forward some suggestions to answer the tax challenge of digital economy.After clarifying the tax problems of digital economy,the thesis proposes to construct the tax system suitable for digital economy,improve the identification of tax objects,and determine the tax place according to the principle of destination.It is necessary to build a tax collection and administration system compatible with digital economy,use digital technology to enable tax collection and administration,and deepen "tax administration by numbers".In addition,international tax cooperation under the digital economy should be strengthened,and mutual assistance in tax collection and administration between countries should be strengthened,so as to contribute Chinese wisdom and strength to effectively deal with this challenge.