Research On The Legal Mechanism Of China-Japan Digital Trade Tax Cooperation

The G20 Osaka Summit in 2019 passed the "Osaka Declaration",and the OECD / G20 inclusive framework responds to the challenges of the digital economy taxation,announcing the opening of a century of changes in international tax law.France and the United Kingdom successively promulgated or reviewed their own digital tax bills;Japan used the G20 Osaka Summit to actively promote the unification of international digital tax rules,and at the same time intensively formulated and implemented the "GAFA" comprehensive regulation,striving to become the "bearers and coordinators" of digital tax governance.As a theoretical support,the "digital existence principle" of digital taxation came into being.It was initially proposed that the average tax burden level of digital business enterprises was significantly lower than that of traditional business enterprises,in order to solve the problems of tax fairness and tax economy,and the spillover effects and welfare benefits were Tax cooperation in tax competition offers opportunities.Japan’s digital trade and taxation cooperation system with different positions and common interests and concerns,strong economic complementarity and weak confrontation,improved international taxation voice,and active promotion of a unified international digital taxation governance beneficial.Although the current legal system of tax cooperation between China and Japan lacks digital tax provisions,the lack of legislative motivations for China’s digital trade tax,the lack of legislative functions and tax classification of China-Japan digital trade have become obstacles to the institutionalization of China-Japan cooperation,however,the OECD digital tax rules are on the horizon;The scale of trade is large and the development prospect is broad;the digital trade tax has the same tax law elements as the digital tax,which substantially reduces the risk of legal identification and application;the CJKFTA 、China-Japan Free Trade Negotiations,and the cooperation stage provided by RCEP demonstrate the Sino-Japanese digital trade Tax cooperation is unstoppable.Digital trade tax cooperation system based on the traditional tax cooperation framework theory can be derived into four aspects: tax collection and management rights,dispute settlement mechanism,tax rules,and technical cooperation.Among them,the tax collection and management right and dispute settlement mechanism,as the scope of digital trade tax cooperation scope and the ultimate guarantee of controlling the specific tax rules and technical cooperation,are of institutional significance.Recently,CPTPP、USMCA、and Japan-Europe EPA digital trade rules have not yet established digital tax collection and management rights rules.There are existing problems with the differences between China and Japan’s digital tax collection and management rights,limited customs collection and management capabilities,and differences in tax enforcement and enforcement by country.Transfer pricing and permanent establishment standard cases are the most common in Japan and Japan in the settlement of bilateral tax disputes,differences in legal basis,and differences in tax enforcement indicate that China and Japan have established a digital tax dispute settlement mechanism system and implementation obstacles.Regarding the digital tax collection and management right,consider the "digital existence principle" combined with the "continuous and significant" rules proposed by the OECD Secretariat to determine market-oriented tax collection and management rights and reserve rules to improve the space through "window clauses";and the settlement of digital tax disputes between China and Japan The mechanism is reached by mutual agreement and a third-party neutral arbitration institution is settled.China needs to carry out legislative feasibility studies in establishing China-Japan digital trade tax cooperation and establish a digital tax governance system with Chinese characteristics;attach importance to cooperation in the Japanese tax system and eliminate differences with the US tax system;use the “Belt and Road” tax collection and management cooperation mechanism,and China-Japan freedom The trading system is the cornerstone of strengthening international cooperation between RCEP、CJKFTA and OECD to implement interest orientation and promote interest coordination;explore redirected supporting laws and policies to cooperate with third-party digital markets to achieve sustainable development of China’s tax system.