Study On Tax Risk Prevention Of Foreign Contracted Project Management

Under the initiative of the Belt and Road Initiative and the active promotion of the Chinese government,China's foreign contracted engineering industry has developed rapidly.More and more large-scale enterprises have begun to choose the “going out”strategy in various forms including foreign contracted projects.Compared with other forms of investment,foreign contracted projects are characterized by large scale,complex engineering,long project cycle.They are often faced with more stringent external supervision and complicated taxation environment.Therefore,the tax risk challenges will be more severe and the tax risk management requirements will be relatively higher.With the gradual deepening of international cooperation,the company's position in the overseas market has been consolidated and accumulated rich capital and experience.Some enterprises have begun to try more models of foreign contracted projects,which are no longer limited to the past engineering contracting mode.While exploring new models,the tax risks faced by companies are constantly improving.Tax risk is the risk formed by the change of government tax policy and the improper taxpayer's business behavior,which may result in the increase of tax liability.Therefore,tax risk is aimed at individuals and micro-subjects.For foreign contracted engineering enterprises,tax risk exists objectively,but at the same time it is subjective.Therefore,enterprises can analyze the causes of risks,identify and assess tax risks,reducing the level of tax risks.This paper analyzes the domestic and international research on tax risks of foreign contracted projects,and clarifies the concepts of foreign contracted projects,foreign contracted project management and tax risks.From the perspective of foreign contracted engineering enterprises,the paper analyzes the path of project tax risk formation,including information asymmetry,decision-makers' opportunistic tendency and bounded rational decision-making.At the same time,the main factors of tax risk formation are analyzed from the internal and external aspects of foreign contracted engineering enterprises,namely,the enterprise's own tax control,the host country tax system,and the resident country tax policy.When analyzing the tax risk of a project,according to the periodicity of the project,the project is divided into four stages: preparation stage,contract negotiation stage,implementation stage and completion and withdrawal stage.The main tax risks in each stage of the project are sorted out and analyzed according to the systematic andhierarchical principles of risk analysis.In the specific analysis of project tax risk,it is found that tax risk exists in all stages,and the impact of different tax risk factors on the project is also different.Based on the case of overseas contracted projects of A enterprise,the tax risk analysis is carried out from different stages of the project cycle,using the typical to general analysis ideas.It is concluded that there are risks such as improper application of withholding tax rate,unclear tax-related clauses,unreasonable contract splitting and project withdrawal in A enterprise.Finally,from the factors of tax risk formation of overseas contracted engineering enterprises,this paper analyses the causes of tax risk formation of enterprise A,and the unreasonable points in tax risk management of enterprise A.Combining with the case of enterprise A,this paper provides tax risk prevention suggestions for overseas project management of overseas contracted engineering enterprises in China from three aspects: properly coping with the differences of tax environment between domestic and foreign,consideration of project contract,and improvement of enterprise's own tax management and control.