The Research On Controlled Foreighn Corporation Tax System Of China

Due to the tax burden gap between different nations and the world economic integration, transnational group of companies often establish controlled foreign company in tax paradise, just in order to reduce tax burden. However, due to the world economic crisis, the global enthusiasm for anti tax avoidance is unprecedented. In June 2013, OECD released the BEPS action plan, and be endorsed by the leaders of the country in September at the G20 St Petersburg summit. In the plan, one of the most important is to develop effective rules of Controlled Foreign Company. Our country in 2009 promulgated the "special tax adjustment implementation measures(Trial)" in the eighth chapter of the seventy-sixth to eighty-fourth is about the management of Controlled Foreign Company. We can not deny our work in this respect especially controlled foreign company tax relative to the developed countries in Europe and the United States still need to be improved and perfected.Based on this background, the first chapter is an introduction to the background, research significance. The second chapter is divided into three sections introduced the Controlled Foreign Company tax theory. In the third chapter, we study the latest introduction of BEPS action plan results in the third plan of action for the formulation of effective controlled foreign companies rules. The fourth chapter introduces the current situation and defects of China’s tax system of Controlled Foreign Company. The design of tax system has "control" standard is unknown, the main tax defects, the exemption clause is too simple and other issues. There is the weakness of tax consciousness of citizens in tax collection. Based on the existing problems of China’s Controlled Foreign Company tax. Tax system design aspects:(1) clear "control" standard, in addition to clear legal control standards, should also be clear economic control, substantial control standard;(2) to expand the tax scope of subject;(3) comprehensive utilization method for determination of CFC income, according to may lead to the risk level of BEPS worrying, different degrees of tax supervision;(4) in the exemption clause increase anti splitting rules. Suggestions on anti tax avoidance practice:(1) to strengthen the exchange of information with the countries of the world;(2) increase the introduction and training of anti tax avoidance talent.