The Impact Of Cross-border E-Commerce On Traditional International Tax Jurisdiction And Its Countermeasures

With the development of digital technology,cross-border e-commerce was born.Cross-border e-commerce activities have promoted the development of the world economy,changed the traditional forms of trade,and brought unprecedented impact and challenges to the traditional principles of tax law.In the field of international tax law,the most outstanding challenge is the inability to apply the traditional principles of international tax jurisdiction.Scholars and policy makers in the international community have always focused on the issue of tax jurisdiction in cross-border e-commerce activities.Judging from the current state of research on the taxation of e-commerce by the international community,many countries have already adopted their own positions and views on whether or not to levy taxes on e-commerce and how to levy tax on e-commerce.China's taxation issue on cross-border e-commerce has always been vacant in legislation.As the largest developing country in the world,China has consistently played the role of a net importer in cross-border e-commerce activities,and has paid attention to and strived to participate in cross-border e-commerce.In the study of the issue of tax jurisdiction,safeguarding China's taxation sovereignty and interests is an urgent task of our country.This paper begins with an analysis of the application of traditional tax jurisdictions under cross-border e-commerce and focuses on the challenges of cross-border e-commerce to traditionalinternational tax jurisdictions.It comprehensively analyzes the efforts made by international organizations and representative countries to face this challenge.In order to solve the problem of China's cross-border e-commerce tax jurisdiction,it puts forward sound suggestions.This article is mainly divided into four parts.The first part is an overview part,introducing the connotation,characteristics,classification of cross-border e-commerce,the taxability analysis of cross-border e-commerce and the general theory of the traditional international tax jurisdiction system,leading the principle of source tax jurisdiction and the principle of residents' tax jurisdiction,doing theoretical work for the full text.The second part mainly introduces the impact of cross-border e-commerce on traditional international taxation jurisdiction,which is the key part of the full text.From the difficulties in the definition of the nature of e-commerce revenue and the inapplicability of the system of permanent institutions,we discuss the challenges of cross-border e-commerce to the principle of tax jurisdiction of the source,from the obstacles to the identification of natural persons' resident status and the obstacles to the identification of legal persons' resident status.The following aspects discuss the challenges of cross-border e-commerce to residents' tax jurisdiction principles.And by citing the Amazon kindle e-book reader cross-border e-commerce as an example,it confirms the impact and challenges that traditional international tax jurisdiction system has encountered in the e-commerce environment.The third part introduces the efforts made by all countries in the world to solve the problem of taxation jurisdiction under cross-border e-commerce.It starts from three angles: world organizations,developed countries and other international society.Firstly,the world organization represented by OECD was introduced to resolve the issue of tax jurisdiction over cross-border e-commerce,and proposed new rules for identifying permanent establishments.Secondly,to discuss the developed countries' position and views on solving this problem,the United States,in order to protect the rights of its net e-commerce exporting countries,advocates insisting on the implementation of the taxation jurisdiction priority and tax exemption system;Different from the United States,the EU insists that it must strictly control theelectronic commerce,implement the value-added tax policy,and follow the principle of the tax jurisdiction of the source.Than it introduced the international community's doctrine on taxation of e-commerce,such as the proposal of the American tax collector RL Durbert to impose a withholding tax plan,Canadian scholar Arthur Keder cited a scheme that can impose a bit tax on e-commerce.The scholars Arvida A.Scar and Lu Hinekens proposed a solution for a virtual permanent establishment.Finally,we evaluate the practices of the international community and draw lessons from our experience.The fourth part puts forward the international experience that can be used for reference in China's cross-border e-commerce taxation legal system,from three aspects.The first is to abide by the preferential principle of tax jurisdiction of the source country,because China is playing and may play a long-term role as a net importer of e-commerce.Second,we can learn from the virtual permanent establishment program and analyze the rationality and feasibility of its application in China.Third,tax coordination and mutual assistance among countries should be strengthened.