The Studies On The Tax Risk Prevention Of Foreign Contracted Projects ——Taking Chinese Enterprises Going Abroad To Indonesia As An Example

The “Belt and Road” initiative is a new round of major economic development strategy implemented in China.The purpose is to promote regional economic cooperation,promote economic prosperity in countries along the route,and truly achieve mutual benefit and win-win results.With the steady progress of the "Belt and Road" construction,the internationalization of China’s economy has accelerated significantly,and Chinese companies have continuously accelerated the pace of "going global".Among them,foreign contracted projects have always been China’s advantageous projects,and they are "going global" important form.Moreover,most of the countries along the “Belt and Road” are developing countries,where are in the process of rapid economic and social development.The accelerating urbanization process has put forward higher quality requirements for infrastructure such as roads,transportation,and water conservancy.Opportunities have been provided for foreign contracting projects.However,foreign contracted projects have the characteristics of large scale,complex engineering,and long project cycles,which have a significant impact on local politics,economy,employment,ecology,etc.,and have received high attention from the countries where the projects are located.In the process of continuously expanding the scale of foreign contracted projects,Chinese companies will face more severe tax risks.Therefore,under the "Belt and Road" initiative,in order to help Chinese enterprises to successfully carry out foreign contracting projects,and to continuously improve the competitiveness and influence of Chinese foreign contracting engineering companies in the international market,it is important to study the tax risk prevention of foreign contracted engineering companies,which is the key to the successful development of foreign contracted engineering projects.First of all,this paper starts with the definition of external contracted projects,the main mode,and the definition and characteristics of corporate tax risks.It clarifies the tax risks of external contracted projects of enterprises under different division angles.It also introduces the tax risk prevention system under the comprehensive risk management framework which composed of environmental analysis and target setting,tax risk identification and assessment,tax risk response and control,information communication and supervision feedback.Secondly,after analyzing the development status of China’s foreign contracted engineering industry and China’s related tax preferential policies,this paper selects Indonesia,a key country along the “Belt and Road”,as the research object.This paper summarizes Indonesia’s tax environment from four aspects.On this basis,this paper comprehensively identifies the tax risks that Chinese enterprises may face when they are “going global” to carry out contracted projects in Indonesia,including in the project bidding stage,negotiation and signing stage,execution stage,and completion settlement stage.This paper also deeply explores the current status of tax risk prevention of Chinese enterprises’ external contracting projects.Then,combined with the tax risks encountered in each stage of Company X ’s Indonesian power station project,a comprehensive assessment of the impact of tax risks on Company X was made,and the problems existing in tax risk prevention is explored from the two aspects of the inadequate tax risk prevention system of the enterprise and the lack of specificity of the taxation service of the tax authority.Finally,according to the problems existing in tax risk prevention analyzed,this paper puts forward specific countermeasures for tax risk prevention of China ’s foreign contracted engineering enterprises from the perspective of enterprises and the government,which is committed to helping China ’s foreign contracted projects enterprises to “go global” better and faster.