Papers Category:Business Administration Papers
- E-commerce Papers
Post Time:2006-5-23 9:18:00
[Abstract] This cross-border business to the existing international tax system, the traditional source of taxation principles and relevant legal concepts and challenges raised in the evaluation of relevant countries and international organizations to solve the simmering issue of taxation of electronic commerce on the basis of policy options line with China's actual conditions and put forward our government in addressing the issue of e-commerce distribution of international tax principles and measures to be taken by the views.
[Keywords:] e-commerce, international taxation, legal
E-commerce (electronic commerce) refers to the use of electronic communications equipment and technology in the party between two or more parties a variety of goods, technologies and services transactions. Broadly speaking, e-commerce also includes the parties to the transaction by telephone, telex and fax communications to the commercial transaction, but the narrow or strict sense of the e-commerce refers to the machine technology is widely adopted on the basis of electronic data interchange ( EDI) and internet (internet) to conduct commercial transactions. Since the mid-90s, the electronic information technology, the fast and the international popularity of the Internet promising to provide a global electronic virtual market, and the business transactions conducted via the Internet with a direct, fast and inexpensive features that significantly improve the the effectiveness of commercial activity, so that e-commerce Internet applications to become the largest hotspot. As one American scholar said, 'In 90 years, the world's fastest-growing commercial center is not located in a particular region, but in the better known of the electronic space (Cyberspace) into. ' to the direct-to-consumer direct sales model, known for the U.S. Dell (Dell) the company in May 1998 in the money in sales of up to 500 million, the company expects 2000 revenue to online sales accounted for half of total income , Amazon's online bookstore's operating income in 1996 soared to 15.8 million U.S. dollars in 1998 to 4 billion U.S. dollars.  it was predicted that by 2002 the world through the Internet between the business turnover in 1997 from 780 billion dollars to 842.7 billion U.S. dollars. 
-Oriented network technologies built on the basis of the rapid development of e-commerce for humanity convenience, efficiency and wealth, but also the adjustment of national long-term well-established tradition of commercial transactions between the legal system raises serious challenge. Current national government departments and international organizations are developing e-commerce legal issues relating to countermeasures. This paper from the Chinese point of view, examining analysis of cross-border e-commerce transactions may be China's current legal regime of international taxation and the impact. In conjunction with the development of e-commerce in China's current status and future trends of the Chinese Government in cross-border distribution of international taxation of electronic commerce should take a principled stand and the corresponding countermeasures proposed by the author's analysis and recommendations for the relevant departments and teach academic colleagues in international law.
1, cross-border e-commerce on the traditional legal system, the challenges of international tax
In accordance with the majority of scholars to understand, adjust in a variety of international economic transactions arising from the allocation of cross-border income tax benefit relations between the legal system of international taxation, enacted unilaterally by the countries and between domestic income tax law signed bilateral or multilateral international Tax Treaties two parts.  In China, specifically, it is primarily developed by the Chinese government's 'The People's Republic of China Foreign-invested Enterprises and Foreign Enterprises Income Tax Law' (hereinafter referred to as 'Enterprise Income Tax Law') and 'Personal Income Tax Law of the People's Republic of China' (hereinafter referred to as 'Personal Income Tax Law') and its implementing rules and regulations, and the Chinese government has signed with 57 national governments to avoid international double taxation on a bilateral tax treaty regime posed.
The income tax system with other countries, as in pairs of non-resident foreign enterprises and individuals from the territory of China cross-border income tax issues, China's current system of international tax law implemented in the source tax jurisdiction, but also based on the taxpayer have some physical presence in the territory (physical presence) and for the proceeds of the qualitative classification of foundation. The so-called taxpayer's physical presence in the territory is defined as the taxpayer itself or its agent in China engaged in activities or organizations within its own boundaries and sites such as the existence of objective reality, such an objective existence of the circumstances often constitute the Chinese government on non-residents pay tax people from within the operating profit or labor remuneration derived from the exercise of territorial jurisdiction to tax cross-border basis. For example, under 'foreign income tax law' in article 2 and Article 4 stipulates that foreign companies set up offices in China, places, engaged in production and operation activities, should be on its adoption by the institution, place of business achieved profits and other income the Chinese Government to fulfill its tax obligations. Here the alleged institutions and places, refers to the establishment of foreign enterprises in China's regulatory agencies, business organizations, offices and factories, exploitation of resources in place, contract construction, installation, assembly, exploration and other engineering work places and the provision of services of establishments as well as the business agent.  'Personal Income Tax Law' to non-resident individuals from the territory of China on labor compensation, investment income or property tax revenues, but also to non-resident individuals in China to provide services or property in the territory of capital, the existence of objective facts as a precondition.  while in China has signed 57 bilateral tax agreements with the above-mentioned organizations on the domestic income tax law, places the concept is similar to the role of a 'permanent establishment' and 'fixed base', etc., they are such agreements Contracting State provided for the residents of the other Contracting State from the territory of operating income and independent source of labor income taxation to exercise the right of restrictions. 
The proceeds of qualitative classification, it is decided that China's current income tax law which applies to taxpayers and tax rates taxation taxation important concepts, but also related to the income tax treaty in which the right of taxation should apply the conflict rules for coordination important issues. China's current personal income tax income tax system to implement the classification, personal taxable income is divided into 11 different types of income for the cost of the project the standard deduction, the tax rate and tax methods are also different. China has signed double taxation avoidance agreements, but also the nature of different types of cross-border income, respectively, provides for the coordination of different parties the right to tax rules on conflict of the two sides, such as cross-border business income applies to 'permanent establishment' principle, for labor compensation were the so-called 'fixed base principle' and the '183-day rule ', while for cross-border dividend, interest and royalties and other investment income, then the use of tax-sharing principles.
However, these adapted to traditional commercial transactions tax of legal concepts and principles of cross-border e-commerce such a way that transactions in the rapid development of emerging today, faced with severe challenges and problems. Cross-border e-commerce is in the territory of different countries, between the parties through electronic data interchange or international business transactions conducted over the Internet with the traditional method compared to commercial transactions, it has a direct or referred to as disintermediation (disintermediation) characteristics, in particular, online transactions (on-line transactions) circumstances, the territory of buyers and sellers in different countries directly on the computer through the Internet purchase price of the negotiation, ordering, delivery and payment transactions, the data of the existence of goods and convenient low communication costs, making the traditional territory of the host country through the establishment of business institutions, establishments or commissioned sales agents to conduct business activities in existence have lost their meaning and value. As the digital economy's development and cross-border online transactions continues to improve, in the non-resident cross-border business income or the taxation of labor compensation, continue to adhere to non-residents in the territory of a fixed institution, place or business agent sort of physical existence of signs, as the source of the exercise of the right of taxation is based on the premise of condition or State, is clearly beyond its participation in the distribution of the share of international tax benefit to reduce the ratio will be an increasingly lower. Like China actually more of a class e-commerce net importer status in the country, they should give serious consideration to this issue.
Second, the cross-border e-commerce is characterized by blurred other sales profits, labor compensation and royalties derived from the difference between the various boundaries. Thanks to modern information and communication technology development, such as books, newspapers, periodicals, audio-visual products and other tangible goods and computer software, proprietary technology and other intangible goods, as well as a variety of consulting services, are available through data processing and direct transmission over the Internet, the traditional In accordance with the nature of the underlying transactions and trading activities in the form of the nature of transactions that drew a distinction tax rules for online trading of digital products and services difficult to apply. For instance, a computer software company with customers via the Internet between a large number of transactions carried out by computer software, client software for this price paid for software companies, whether the sale of goods, profits, or royalties derived from the nature of? The boundaries between the two is not clear. The publisher of a country B to a computer online service mode to the A country of a customer e-books or products, customers can be viewed or downloaded via computer at any time they need or prefer the article information or music. Publishers thus get the proceeds. That can be counted as sales revenue, also be interpreted as a labor remuneration. Could also be recognized as royalty income. With the adoption of e-business transactions resulting from the proceeds of the qualitative classification of difficulties in the current classification of China's individual income tax under the income tax system and tax rates should be applied to what manner of assessment on an issue, whether related to the payment of income tax law should be in accordance with the provides a source of withholding tax payments to fulfill legal obligations, it becomes difficult to determine. Implementation of the agreement in the tax aspects, the income can also cause a qualitative difference between recognition of transnational taxpayers the tax authorities with the State party or States Parties to the competent authorities of both the tax applicable provisions of the agreement between the differences on the controversy.
And e-commerce transactions closely related to difficulties in the qualitative identification Another issue is the traditional source of income to identify difficulties in application of the criteria. Income source of identification is related to the country's ability to tax non-resident cross-border income tax revenue sources claim the exercise of jurisdiction over important issues, national income tax law on the nature of different types of income, have identified different sources of income to determine rules. These income tax law, the formation of long-term practice of income determination rules of origin based on the taxpayer's economic activities over a certain objective and income as the basis of geographical indications of origin of the identification mark, such as that operating profits on the source of geographical indications of business place of delivery, the contract signed, and so on, that source of labor remuneration there are signs of performance of services or labor remuneration paid-up land. As the aforementioned cross-border electronic commerce transactions proceeds generated by the qualitative identification difficulties, what kind of study should be applied to identify sources of income rules also become a problem. In addition, even if the proceeds of qualitative classification is not a problem, because e-commerce transactions in the virtual electronic space (virtualcyberspace) carried out, we should apply the traditional sort of objective external geographical indications to determine whether the income source, In some cases, the same problems. For example, with electronic sensors and video-conferencing technology, today, a doctor in the A resident in a country through the Internet for patients who are in country B to diagnose and service, but what of performance of such services is difficult to ascertain.
Second, cross-border e-commerce taxation policy options
Cross-border e-commerce transactions on the national traditions and national income tax system through the tax agreements between the international tax coordination system to determine the challenges and problems, has attracted international tax academics and governments and relevant international organizations, extensive attention, scholars and related tax laws Government departments are actively exploring solutions to this problem research program. In November 1996 the U.S. Treasury Office of Tax Policy released a paper entitled 'Global e-commerce on the impact of tax policy' of the report, in August 1997, the Australian Government Taxation Office also published its e-commerce research group on e-commerce on tax collection study the impact of 'taxes and the Internet', then, Japan, Canada, the Netherlands, New Zealand and other countries the financial sector have announced their respective e-commerce tax issues on the study. The OECD, respectively, in November 1997 in Finland, Turku, and in October 1998 in Ottawa, Canada convened a coordination of economic policies on e-commerce of all members of the ministerial meeting, and adopted at a meeting in Ottawa, the OECD Tax Committee (CFA) to submit the 'E-Commerce Taxation Framework Conditions' report. International Tax Law community, relevant national government departments and international organizations, research reports, analysis of e-commerce activities on the traditional legal system of international tax issues and implications arising from the same time, but also on how to resolve these issues a preliminary policy recommendations. While these proposed strategies is far from the final policy decision, but tend to reflect the policy ideas and initiatives are worthy of our attention and careful study.
In resolving the issue of cross-border e-commerce taxation response to the discussions, given the current international tax system, many of the traditional concepts, rules and principles of the difficult to adapt to the characteristics of e-business transactions, international tax law scholars, some people advocated radical or revolutionary of the reform program, which recommended that income tax, value-added tax, the levy of new taxes for e-commerce, through such a new special tax levy to address the e-commerce activities of domestic and international tax allocation. For example, the Canadian tax law scholar Arthur