The International Taxation Of Royalties Under The Background Of Knowledge Economy

The important characteristic of knowledge economy is trading knowledge and technology-based intangible assets, and these transactions greatly exceeded those of traditional economic times. Royalties taxation has become the most frequent international taxation issues under the conditions of knowledge economy. But the knowledge economy caused great impact on the traditional international taxation theory, which has been unable to fully apply to knowledge economy. Further exploration and research has become an urgent task. Therefore research on royalties tax issues is of typical significance.Currently, there are no special research papers on royalties tax issues under knowledge economy conditions in the homeland. Many documents discussed impact of Electronic Commerce over tax rules. In fact, Electronic Commerce is only one kind of platform for knowledge economy. There are other platforms, and knowledge economy affects international tax not only from trading way, but from trading objects, trading process.This article starting from analysis of the impact of knowledge economy over international tax theory, has summed up the challenge to tradition international tax theory ,and has discussed the general principles that applies to international tax under the knowledge economy conditions. Then, under the guidness of those principles, this article has detailedly discussed the confirmation of royalties, transfer pricing adjustment, territorial tax rights. At last, the article summed up Chinese relevant tax systems, checked up its applicability to knowledge economy, and submitted corresponding suggestions. Eventually, I hope this research can provide reference and advice for other knowledge economy tax issues through every effort I made.