| With the rapid development of information technology,digital economy based on new technologies such as big data and Internet has become an important engine of global economic growth.At present,the theoretical guidance of international tax jurisdiction division is still the Economic Relevance Principle put forward by four economists in 1923,which recognizes the contribution of the source country and the resident country to the profit,so the tax jurisdiction is divided into the source country and the resident country.Permanent Establishment Principle is a typical representation of Economic Relevance Principle,namely as residents tax jurisdiction and the source jurisdiction conflict,first confirm the jurisdiction of resident countries,only when a non-resident enterprise sets up a permanent establishment in the source countries,the source countries obtain the jurisdiction to tax the profit made by the permanent establishment,and this was the "great compromise" of the 1920 s between source and resident countries in the context of international double taxation.Permanent establishment occupies an important position in the current international tax jurisdiction division,which requires "physical presence",that is,a fixed place of business,or a non-independent agent engaged in specific activities.In view of the limited level of economic development in the 1920 s,the business model was relatively simple,and the country of source and the country of residence were easy to determine,it was feasible to divide the tax jurisdiction between the country of source and the country of residence through the principle of permanent establishment.However,digital economy contains new business models and characteristics,and the value creation mechanism has new content.The existing principles and rules of tax jurisdiction division are difficult to apply to the digital economy.Internet giants,including Google and Apple,are more likely to make tax planning by taking advantage of loopholes in the current international tax system and easily transfer their profits to countries or regions with low tax burden,resulting in a serious loss of tax interests of relevant countries and unfair distribution of international tax rights and interests.In addition,harmful tax competition among countries for tax sources and bases has intensified,further stimulating base erosion and profit shifting.Therefore,it is needed to update the rules on the division of tax jurisdiction under the digital economy in the field of international tax,so as to readjust the distribution pattern of international tax benefits and promote the construction of a more just and reasonable international tax order.To address the international tax challenges posed by the digital economy,the OECD/G20 launched the "Two Pillars" initiative in 2019,and issued a consultation plan on "Pillar I" and "Pillar II" regarding tax rules for the digital economy.Tax Challenges posed by Digitization--Pillar 1 Blueprint Report and Tax Challenges Posed by Digitization--Pillar 2 Blueprint Report have be released in 2020.On October 8,2021,the OECD/G20 Inclusive Framework held its 13 th General Meeting,in which 136 countries and regions reached a consensus on international tax system reform,including international harmonization of income tax,and issued the Statement on the Dual-Pillar Approach to Addressing the Challenges of Digitalized Economic Taxation.Among them,the Pillar one addresses the jurisdiction of the multinational enterprises operating income division,it absorbed the "users" of the European Union proposal,the United States "marketing model of intangible assets" proposal,India’s "significant economic existence",for the first time put forward the concept of "market jurisdiction",aims to redistribute tax interests among countries.The second pillar addresses base erosion and profit shifting and is based on a "15% global minimum effective tax rate" proposed by France and Germany.Starting from the challenges brought by the digital economy to the traditional rules on the division of international tax jurisdiction,this dissertation summarizes the legal issues on the division of jurisdiction into the following three aspects centring on the "Two-Pillar" exploration plan of OECD/G20: first,the validity of the principle of economic relevance;Second,the establishment of tax jurisdiction of market countries in the digital economy;Third,the division of jurisdiction in the international tax competition under the digital economy.In terms of style,the paper is divided into the following five chapters.Based on theoretical analysis,the first chapter introduces the concept,establishment and exercise of tax jurisdiction and jurisdictional conflicts,defines the concept of tax jurisdiction division based on jurisdictional conflicts,and summarizes the current theories of international tax jurisdiction division,such as the principle of capacity to pay,the principle of benefit and the principle of economic relevance.It also introduces the recognition rules of permanent institutions,profit distribution rules and distribution methods under the guidance of the principle of economic association.Combined with the concept,business model and characteristics of digital economy,this paper analyzes the problems in the theory and rules of international tax jurisdiction division under digital economy.Based on theoretical analysis,the first chapter introduces the concept,establishment and exercise of tax jurisdiction and jurisdictional conflicts,defines the concept of tax jurisdiction division based on jurisdictional conflicts,and summarizes the current theories of international tax jurisdiction division,such as the principle of capacity to pay,the principle of benefit and the principle of economic relevance.It also introduces the recognition rules of permanent establishment,profit distribution rules and distribution methods under the guidance of the principle of economic association.Combined with the concept,business model and characteristics of the digital economy,this paper analyzes the problems in the theory and rules of international tax jurisdiction division under the digital economy.The second chapter attempts to answer three questions from the perspective of theoretical development and exploration path based on the responses of OECD/G20,EU and relevant countries to the theoretical issues facing the current division of tax jurisdiction in the digital economy.The first question is whether "value creation" can be used as a dividing principle to distribute tax rights of market countries based on the consideration of value creation factors such as data and user participation.The second question is whether base erosion and profit shifting,harmful tax competition,can be effectively addressed by harmonizing national income tax rates.The third question is,under the digital economy,which division model is more reasonable to use to solve the above problems: bilateral,regional or multilateral model?In third chapter,the concept of "market jurisdiction" is clarified and the relationship between the tax jurisdiction of market country and the tax jurisdiction of source country is confirmed based on the first pillar scheme of OECD/G20.In fact,the division of tax jurisdiction in digital economy is to solve the problem of how to distribute the tax jurisdiction of source country as the supply side and the tax jurisdiction of market country as the demand side.Based on this,according to the current experience in the division of tax jurisdiction,the tax jurisdiction of market countries is established from three aspects: the scope of taxation,the degree of linkage and the recognition standard,and the distribution of profits.It also introduces and analyzes the OECD/G20 pillar I solution,the EU’s long-term solution and short-term solution,as well as the national digital services tax and other unilateral measures.The fourth chapter mainly discusses the division of jurisdiction in international tax competition under the digital economy based on the OECD/G20 Pillar II plan.This chapter introduces the international tax competition and harmful tax competition,on the basis of reviewing the harmful tax competition and international tax jurisdiction under the digital economy,the relationship between the digital economy caused a new round of international tax competition,and because of the absence of corresponding rules under the current international tax system,making tax based on the self-interest of unilateral measures,The intensification of harmful tax competition facilitates international tax evasion.In order to ensure the fairness of taxation,it is necessary to divide the jurisdiction in international tax competition.This chapter also introduces and analyzes the "Global Minimum Effective Tax Rate Scheme" of Pillar One of OECD/G20.The fifth chapter introduces the current situation of China’s digital economy,and combs out the situation of China’s participation in the division of international tax jurisdiction and the tax dilemma it faces.By analyzing the influence of tax jurisdiction division scheme under digital economy on China,this paper clarifies China’s position in this round of tax reform and puts forward China’s countermeasures to promote the construction of tax jurisdiction division rules of digital economy.To be specific,This chapter mainly starts from the effects of the comprehensive and objective evaluation of BEPS action plan,based on the reality of our country and the rational reference for permanent establishment plan,establish and perfect the principle of domestic digital economy tax laws and regulations system,actively participating in income tax rules of the international coordination,participate in international cooperation in order to enhance voice multi-dimensional considerations strategy,to provides Chinese solutions and contributes Chinese wisdom for promotion of the establishment of rules for the division of economic taxation jurisdiction... |
PDF Full Text Request