The Study On The Legal Issues Of International Taxation Of Pension Funds And Their Transnational Income

Because pension funds bear the responsibility of alleviating the social problems caused by aging,they always enjoy preferential tax treatment in the domestic laws of various countries.However,with the economic globalization and the search for more robust and low-risk investment varieties and tools of pension funds,the transnational investment of pension funds is becoming more and more frequent.Whether the pension fund established in a country can obtain the preferential tax status on its transnational investment income in the source country based on the domestic tax law is related to the sustainability of the development of the transnational investment of the pension fund.In order to alleviate the pressure of aging in their own countries,many countries have begun to seek mutual benefit and win-win by signing bilateral tax agreements with the countries of origin to give tax preferences to the transnational income of pension funds.In the latest version of the OECD and UN model tax convention,more space is devoted to the conditions and scope of the tax preference.In order to solve the problem of tax coordination of pension funds'transnational income,it is necessary to start from many aspects.First,the concept of a recognized pension fund needs to be determined on the basis of consensus between the two Contracting States,the key point of which is that the pension fund needs to meet two conditions:first,it has the purpose of providing pensions benefits to individuals.Second,pension funds are regulated by law in resident country for this purpose.Secondly,not all source taxes on transnational income of pension funds can be exempt tax.different tax coordination rules should be applied according to the classification of investment income,but in the case of tax exemption agreed in bilateral tax agreements,only income of an operational nature cannot be exempted from tax.Finally,the transnational investment of pension funds involves numbers of countries and multiple subjects,so it is more likely to produce the problems of double taxation and double non-taxing in this process.these problems can be flexibly avoided by adopting a limited source taxation model for pensions.On the issue of tax coordination related to the transnational income of pension funds in China,we should take the actual situation and international trends of our country into account,and appropriately expand the scope of tax-exempt income of pension funds and concept of recognized pension funds.Maintain the same situation as the average country,and it is also a response to the rapid development of pension funds in the future.