Study On The Determination Of The Royalties In The Digital Economy

With the development of social economy,digital economy as a product of information communication process change,its appearance has brought great change to the traditional economic and trade,international trade has been booming,especially in the type of intangible assets as a representative of the trade background,and intangible assets as a high additional technology worth trading object.Often the formation of royalties,while the emerging trading mode of digital economy makes these intangible assets transactions emerge in an endless stream,complicated and subtle,difficult to apply the traditional international tax rules,causing the focus of attention all over the world to the digital economy royalties.In the digital economy,that royalty has become more complex,this paper analyzes the relationship between the royalties and operating profit,labor costs,the basic theory of franchise from traditional economy use fees,and combined with the features of the digital economy and a series of challenges under the background of the to explain the change under the background of the franchise use fee issues identified.Not only that,due to the development of the digital economy caused a certain impact the traditional permanent establishment principle,makes it difficult to apply the current business model,which directly affect the determination of the nature of the royalties.Therefore,this paper also discusses the influence of the permanent establishment on the royalties in the digital economy.This paper summarizes the relevant provisions of international organizations,first of all,the concept of royalties and related theory,the connotation and characteristics of the digital economy are analyzed.Combined with the current economy under the typical business model,the analysis of the challenges identified royalties,innovative use of various cases and makes a detailed description on this challenge,summed up the qualitative regularity.At the end of this paper,we introduce the current legislation situation of our country’s franchise fee,find out the deficiency and put forward some useful suggestions to perfect our laws and regulations and deal with the challenges of the digital economy.