Research On Tax Risk Response Of Environmental Protection Enterprises’ Transnational Investment

In the context of sustained economic growth,China’s investment status has gradually shifted from being a major importing country to being a major exporting country,and more and more enterprises are using their idle resources to conduct cross-border investment to maximize their interests.However,due to the complex tax environment in the international market and the insufficient experience of Chinese enterprises in going abroad,they are still in a weak position in dealing with international tax issues,and thus face more tax risks.Especially in the international situation where the voices for energy conservation,emission reduction,and low-carbon environmental protection continue to rise,it is worth studying how environmental protection enterprises respond to the possible tax risks of transnational investment and reduce the tax burden.Most developed countries have developed smoothly with the help of early industrial trends.In recent years,although they have actively responded to international calls for explicit regulations on environmental protection,the tax system related to environmental protection is not perfect,and there are no clear legal provisions to levy taxes on environmental pollution.In contrast,some developing countries at this stage do not forget to protect the environment while developing their economies due to factors such as their geographical environment,the particularity of their economic lifelines,and global environmental protection concepts.However,due to their limited technological level,it is difficult to achieve synchronization between the economy and green development.Therefore,when foreign enterprises with advanced technology invest,they will be given significant tax incentives to relevant enterprises to encourage environmental protection enterprises to invest in their own countries,Relieve the contradiction between economic development and environmental protection.Therefore,by studying the tax risks of environmental protection enterprises’ transnational investment in developed and developing countries,this article provides some countermeasures to reduce the tax risks of enterprises’ transnational investment in terms of whether to choose developed countries with higher requirements and hidden tax risks or developing countries with environmental protection restrictions and more environmental tax benefits when selecting transnational investment destinations,With a view to encouraging more environmental protection enterprises to go abroad and conduct transnational investment to maximize their interests while responding to environmental protection concepts,and achieving win-win results in economic development and environmental protection.This article is divided into five parts.Firstly,it introduces the research background of the article,the theoretical and practical significance of comparative research on tax risks related to transnational investment in developing and developed countries,as well as combs relevant domestic and foreign subject literature,and briefly introduces the research methods,innovations,and shortcomings adopted in the article;Then,it briefly defines the concepts of environmental protection enterprises,transnational investment,and tax risk,and expounds the theoretical basis of the article from three aspects: the theory of maximizing corporate benefits,the theory of risk and risk management,and the theory of tax effects;Then introduce and analyze the tax environment of the case company and the invested country in this article;The fourth part of this article analyzes the possible tax risks and causes of transnational investment in developed and developing countries,and makes a comparative analysis of the differences;The last part of the article is a summary of the full text.Based on the theoretical basis and case analysis of the first four parts,it proposes relevant feasible suggestions for environmental protection enterprises to deal with tax risks in transnational investment.