Legal Prevention Of The Overseas Investment Tax Risks Of Chinese Enterprises

Since the reform and opening up,from our country has proposed “going out” and a series of opening-door policies to the steady progress of the “Belt and Road” initiative,the number of Chinese overseas investment enterprises has achieved a breakthrough,and the number and quality of foreign investment organized by Chinese enterprises have been greatly improved.However,due to the complicated international environment,historical and cultural differences,Chinese enterprises will also face many challenges and risks,among which tax risk cannot be ignored.Chinese investors often encounter many tax risks,such as tax differences,international double taxation,transfer pricing and capital weakening under anti-tax avoidance,tax disputes and so on.If investors don’t pay attention to and guard against it,enterprises may bear a heavy tax burden and fall into a disadvantageous position.Based on this,on the case of income tax return of Chinese enterprises in Indonesia as an example,through studying the case,to analyze concretely the overseas investment tax risks problem of Chinese enterprises,and puts forward the concrete measures of legal prevention,in the hope that it can help Chinese overseas investment enterprises to improve the ability of tax risk prevention and control.The overseas investment management of “going out” enterprises usually goes through three stages: preparation,implementation and withdrawal,and the tax risks accompany the whole process of enterprise management.Therefore,it classifies the tax risks of overseas investment enterprises according to these three stages,and further studies the causes of giving rise to the tax risks of enterprises overseas investment from the macro and micro levels.From a macro point of view,mainly due to the complex and changeable political,economic,historical and cultural environment abroad,which leads to the risk of overseas investment of enterprises,and the tax risk is closely related to these factors.From the micro point of view,due to the inadequate preparation of Chinese overseas investment enterprises themselves,and lack of understanding of the investment environment of the host country,the lack of reasonable tax planning,and the imperfect collection and management system of foreign tax departments,tax disputes have not been effectively resolved,which will cause tax risks of overseas investment enterprises.In the light of the above reasons,the author puts forward to the specific measures of tax risks prevention,so that the tax risks that foreign investment enterprises may encounter can be deployed and prevented early,and the tax risk is reduced to the lowest in the course of business decision-making.