Research On Taxation Issues Of Direct Investment In Russia

“Belt and Road” is the abbreviation of “Silk Road Economic Belt” and “21st Century Maritime Silk Road”.It was first proposed during the visit of President Xi Jinping to Central Asia and Southeast Asia in 2013.It was officially incorporated into China's national planning in 2015 and entered.A comprehensive construction phase.There are more than 60 countries along the “Belt and Road”,including Russia and China,and across the Eurasian continent.The mineral resources are very rich and the economic level is constantly improving.It is an important market for the “Belt and Road” initiative.Since the establishment of diplomatic relations between China and Russia,the two countries have achieved good development in bilateral economic and trade fields,but compared with them,the relationship between China and Russia in investment cooperation still needs to be strengthened.According to the data of the Ministry of Commerce,as of the end of 2017,China's stock of direct investment in Russia was 13.872 billion US dollars,accounting for 8.98% of the country's investment stocks along the “Belt and Road”.The Russian market still has broad investment prospects.By studying the taxation problem of direct investment in Russia,on the one hand,it can give enterprises a clearer and more comprehensive understanding of the Russian tax system,optimize the tax prevention problem of enterprises' investment in Russia,and promote the process of direct investment by enterprises;It can provide suggestions for optimizing the tax service system of our tax authorities.This paper analyzes Russia's basic tax system,special tax adjustment and SinoRussian tax treaty through comparative analysis and information research.The basic tax system in Russia mainly compares the similarities and differences between the tax elements of China and Russia in corporate income tax,value-added tax,personal income tax and mineral resource tax,and proposes matters that enterprises should pay attention to when investing in Russia.Tax treaties play an important role in protecting the interests of investors.This article helps companies to clarify the terms and issues that need to be focused on in the Sino-Russian tax treaties by introducing important provisions in the Sino-Russian tax treaties.Through the above analysis and research,the third part of this paper expounds the tax problems that China may encounter in the process of direct investment in Russia from the perspective of enterprises and government.For enterprises,the tax problems encountered are: the first investment before the Russian tax system is not clear enough;the second how to choose the company's organizational structure to achieve the purpose of reducing the tax burden;the third in the business process,the emergence of tax disputes How to solve the problem,as well as the tax issues of transfer pricing and capital weakening.From the perspective of the government,the taxation provisions and mutual consultation procedures in the Sino-Russian tax treaty still need to be improved;the taxation service system of China's tax authorities also needs to be upgraded.In view of the tax issues raised above,this paper proposes that enterprises need to consider their own situation,combine the company's actual business model and business objectives,and prepare for the prevention of tax problems in advance.First of all,enterprises should understand the current Russian tax system in various aspects before investing,cultivate professional tax talents,and rationally choose the regional and organizational structure of investment in Russia.Secondly,in the process of business operation,it is necessary to make rational use of Sino-Russian tax treaties,transfer pricing and capital weakening.Principles help companies reduce tax costs;finally,when encountering tax disputes,they should actively contact our tax authorities to protect their rights and interests.As a government agency,we must actively improve the content of the Sino-Russian tax treaty and China's tax service system,and actively guide enterprises to invest directly in Russia.