On The Optimization Of Tax Resident Determination Rules For Individual Income Tax In Chinese Mainland

With the increasing frequency of international exchanges and collaboration,more and more individuals are engaged in transnational(regional)work,investment and life,and cross-border individuals frequently involve the determination of tax residency status when handling relevant economic business with relevant trust companies,banks and other financial institutions,as well as tax authorities and other government agencies.In addition,international competition for tax cuts is intensifying,and countries tend to give way to individuals at the tax policy level,so as to attract the effective flow of production factors such as talents,capital and labor in their own countries,and further improve their international tax competitiveness.Finally,due to the differences in the rules for determining individual income tax residency in various countries,the different understandings of tax laws in various countries,and the vague concept of tax provisions,the results of different judgments in the process of determining tax residency in various countries have different results,and the lack of specific and objective rules for determining tax residency will bring great difficulties to the actual collection and management of tax authorities and cause some unnecessary international tax disputes.Based on this,this paper mainly analyzes the Chinese mainland of individual income tax resident recognition rules,appropriately draws on foreign policies on the recognition of personal identity of tax residents,uses international tax competition theory,business environment theory and tax certainty theory,conducts research and empirical analysis on the satisfaction of Chinese mainland individual income tax tax resident recognition rules and lists relevant cases according to the actual situation,and explores suggestions for improving the rules for determining the Chinese mainland of individual income tax resident status.This paper is mainly divided into the following five parts,the first part mainly introduces the research background and significance of the article,sorts out the relevant literature,analyzes and summarizes the research conclusions of domestic and foreign academic circles on this issue,draws on the above literature conclusions and puts forward the research ideas and innovation points of this paper for the omissions in the current academic community in this research field.The second part introduces the core concepts of the Chinese mainland individual income tax residency recognition rules,specifically the concept of Chinese mainland and individual income tax residency,and clarifies the scope of the fields discussed in this paper,the selection of tax types,and the research objects.Secondly,the theory of international tax competition,business environment and tax certainty are introduced to provide theoretical basis and support for the optimization suggestions of this paper.The third part summarizes the historical evolution and current provisions of the Chinese mainland individual income tax resident identity recognition rules,and conducts an empirical analysis on the satisfaction of Chinese mainland individual income tax resident recognition rules,based on China’s national conditions,points out that Chinese mainland the relevant concepts of the residence recognition rules in the individual income tax resident identity recognition rules are relatively general and do not meet the requirements of the principle of tax certainty;The relevant provisions of the "183-day recognition rule" are cumbersome;The lack of orientation of the "six-year rule".The fourth part analyzes the relevant complex situations that will occur in practical work through relevant cases.The fifth part is based on the empirical analysis results of foreign research on the determination of individual tax resident status,the satisfaction analysis results of the Chinese mainland individual income tax tax resident recognition rules,and the cases cited,and proposes detailed residence determination rules;simplifying the calculation of the length of stay of cross-border individuals on the day of entry and exit;Implement optimization recommendations such as the "six-year rule" in layers.This paper has the following innovations: First,the research perspective is innovative.Through reviewing domestic and foreign literature,the author found that few scholars have made a comprehensive analysis of the rules for determining the status of individual income tax residents in Chinese mainland.At the same time,most of the research results are mainly based on the theory of tax fairness,the theory of tax jurisdiction,the theory of tax neutrality,etc.,and this paper introduces new theoretical basis,including the theory of international tax competition,the theory of business environment,and the theory of tax certainty,and studies the rules for the identification of tax residents of Chinese mainland individual income tax.Second,the case is innovative.This article comprehensively analyzes the relevant complex situations encountered in tax practice by combining most cases in real life,in which natural persons include not only foreign individuals,but also individuals with Chinese nationality but living in other countries all year round,integrating the real situation in reality,making the case typical and authentic.Third,the ideas are innovative.In recent years,the spread of the new crown epidemic has also had a great impact on the cross-border stay time of individuals and the business environment of various countries,and countries have successively implemented tax reduction policies to a certain extent to further stabilize the economic situation at home and abroad.Based on the current background of the times,the suggestions in this paper propose that the tax resident identity recognition rules should be conducive to improving China’s tax competitiveness and creating a good investment and business environment for individuals.The further optimization of the rules for determining tax residency status can increase China’s voice in the field of international taxation,improve international tax competitiveness,and better protect China’s tax rights and interests in the international tax reduction competition.This paper mainly adopts the method of combining theoretical research,research empirical analysis and case analysis to explore the optimization path of Chinese mainland individual income tax resident identity recognition rules,which has certain theoretical and practical significance.