Restructuring Of China’s International Tax Rules In The Context Of Digital Economy

While the development of digital technology has changed our production and life,it has also brought new problems to the governance of all aspects of society,one of which is international tax governance.The intangibility of the digital economy and the business model that relies heavily on intangible assets have created the dilemma that traditional international tax rules are not working,especially the permanent establishment rules,which have seriously aggravated the problem of tax base erosion and profit shifting worldwide.In response to the challenges of international tax governance posed by the digital economy,some countries have adopted unilateral measures,such as digital service tax,to close the loopholes in their tax systems,but unilateral measures are prone to double taxation and increasing the tax gap between the rich and the poor.Multi-variable solutions are expected to be more fair and effective solutions.The international community has sought common ground and reached consensus in the shortest possible time,and the variable rules represented by the OECD’s "two-pillars" solution will soon bring revolutionary changes to international tax governance,redistributing international tax administration power and subjecting enterprises in different fields to more equitable constraints.China has a latecomer advantage in the digital economy and is already a large digital economy country.For the sake of national interests and the interests of Chinese enterprises,China must seriously address the international tax challenges brought by the digital economy.Firstly,we should actively participate in the formulation of international tax rules to fully demonstrate our role as a big country;secondly,we should do a good job in the implementation of the international tax system under the "two-pillars" scheme,timely adjust tax agreements,update domestic tax regulations and adjust tax policies to protect our tax interests and enhance the international influence and credibility of our tax governance.