Research On Tax-related Risks Of "Going Abroad" Enterprises

Building the “Belt and Road” is important to the establishment of interoperability partnership,and to achieve this goal,countries along the line need perfect infrastructure construction to support economic development.At the same time,Chinese infrastructure enterprises are not only mature in technology,but also have certain fund guarantee.They can help countries along the line improve their infrastructure construction while opening up overseas markets.The Republic of Indonesia has become a popular area for Chinese infrastructure companies to "go abroad" because of its vast development market,gradually improved business environment,low labor and raw material costs.However,challenges and opportunities coexist.The unfamiliar investment environment has caused Chinese infrastructure companies to face many tax-related risks in Indonesia,which not only severely hinders the development of infrastructure companies,but also damages corporate interests and bears unnecessary tax burdens.In order to help Chinese infrastructure companies avoid tax related risks and open the Indonesian market as soon as possible,this article analyzes the tax risk of infrastructure enterprises under the background of "going out" strategy.First,after sorting out the research of many scholars on tax risk,the paper summarizes the tax-related risks of related infrastructure enterprises,including tax environment risk,tax risk and transnational planning risk.Secondly,it introduces the operating environment of “go abroad” enterprises in Indonesia,and summarizes the relevant system of Indonesian enterprise income tax and value-added tax,then introduces the relevant provisions of the tax treaty credit and the handling of tax disputes in Indonesia.After that,this paper analyzes several cases of infrastructure enterprises,and raise some suggestions to guard against tax related risks in Indonesia.It is suggested that enterprises should fully understand Indonesia’s tax law and strengthen internal financial and tax management guard against the environmental risk of tax system;enterprises should also take good care of tax related documents,establish a harmonious tax enterprise relationship with the tax authorities and communicate more,enjoy the tax preference that should be enjoyed to prevent tax risks;finally,enterprises should take advantage of appropriate holding structure,lay emphasis on the tax risk response of transfer pricing,and improve the planning plan,avoid the risk of transnational planning and ensure the maximization of enterprise interests.Through these suggestions to help infrastructure enterprises achieve better development.