Research On Tax Risk Of Enterprises’ Overseas Investment

Since 2011,the amount of overseas investment by Chinese enterprises has grown rapidly.With the introduction and implementation of the “One Belt,One Road” strategy,the number of overseas investment enterprises in China has increased rapidly.More and more enterprises have chosen to go abroad and expand overseas markets.In 2014,China’s actual foreign investment exceeded the scale of foreign capital utilization,which marked the gradual transformation of China into a capital exporting country.In this context,in order to avoid double taxation between countries,the Chinese government encourages enterprises to invest abroad and actively sign bilateral tax treaties with other countries or regions.However,the scope of the bilateral tax treaty,the degree of perfection of the agreement itself,and the degree of utilization of the tax treaty by the enterprise may bring tax risks to the enterprise.Tax risks have hindered the development of enterprises to a certain extent and inhibited overseas investment by enterprises.The scope and content of tax treaty signing and the degree of utilization of enterprises are the main aspects of tax risk.Therefore,it is particularly important to prevent tax risks,especially tax risks related to tax treaties.This paper mainly uses case analysis method,first introduces the theory of tax risk related,and defines some core concepts.Secondly,it introduces the status quo of overseas investment,including the specific situation of investment and the signing of bilateral tax treaty and BEPS action plan.Then,it introduces the tax risks related to bilateral tax treaties encountered by enterprises when investing abroad,and explains them through cases: First,the scope of bilateral tax treaties needs to be expanded;secondly,there are imperfections in bilateral tax treaties themselves,such as The signing of the tax aggression clause needs to be improved,the mutual negotiation procedure has low dispute resolution rate,long time-consuming and lack of arbitration clauses;finally,the company does not fully utilize the agreement preferential terms,such as dividend interest concession terms,permanent institutional terms,etc.In addition,with the release of the project action plan for tax base erosion and profit transfer,global tax rules will undergo major changes,bilateral tax treaties will be affected,and tax risks faced by companies may increase.After analyzing the tax risks associated with tax treaties encountered by companies investing abroad,this paper proposes tax risk prevention.Preventing the tax risks of overseas investment by enterprises requires the joint efforts of both the state and the enterprises.On the one hand,for the taxation scope of the tax treaty andthe tax risks brought by the imperfect enterprise,it is necessary to prevent at the national level: To negotiate a new tax treaty,expand the scope of the tax treaty,and amend the bilateral tax treaty according to the BEPS Convention and so on;Improving mutual consultation procedures and establish tax arbitration clauses.On the other hand,due to the tax risks caused by the enterprises themselves not fully utilizing the tax treaty preferential arrangements,enterprises need to strengthen their own prevention of tax risks: Enterprises should carefully choose the organizational form;enterprises should strengthen the management of dispatched personnel to avoid being identified.As a permanent institution;Enterprises should fully understand and utilize the terms of the tax treaty by cultivating and utilizing professional talents,making full use of local resources;Establishing a risk assessment system and strengthening tax risk management.