Focus on avoiding double taxation, the Manufacturing Blue Book recommends: Scientifically study and determine the focus of taxation in the digital economy
The "Manufacturing Blue Book: Digital Innovation Report on China's Manufacturing Industry" released on the 24th recommended that my country should follow the trend of global tax reform and choose opportunities to improve the tax system involving digital economy businesses. We can learn from the inclusive tax reform framework related to the digital economy currently led by the OECD, and use the place where digital economy business value is created rather than the place where the company is registered as the source of taxation, and reasonably distribute the taxable income from digital business to various jurisdictions.
The report believes that with the vigorous development of the digital economy, countries have not yet reached an agreement on the international tax reform plan. Although nearly 140 countries have reached consensus on the OECD's "dual-pillar" international tax reform program framework, the OECD, as an international organization, can propose and design international tax reform programs, but cannot coordinate countries and ensure the implementation of the program.
Therefore, on the one hand, as a major country in the digital economy, my country should assume the responsibilities of a major country, pay attention to the fairness of the reshaping of international tax rules, timely track the international tax reform trends of economies such as OECD and G20, actively participate in international tax-related activities, and improve multilateral negotiations. level of participation, propose China’s plan to tax the digital economy, and improve the voice of international taxation. On the other hand, our country should accelerate the pace of domestic tax reform based on the actual domestic situation. Based on the principles of tax fairness, efficiency, neutrality and other principles, after understanding and mastering the basic information of the relevant industries, we should reasonably determine the profit margin and other basic conditions of digital economy-related businesses, Accelerate the formation of a tax system that is more adaptable to the digital economy, more scientific, reasonable, sustainable and globally compatible, and optimize the business environment for enterprises to "go global".
The report points out that the focus of taxation in the digital economy should be scientifically and rationally determined, focusing on avoiding issues such as double taxation. Digital economic business breaks through geographical and spatial restrictions and is realized through remote mode with the help of digital technologies such as big data and artificial intelligence. In particular, the profits of cross-border manufacturing companies involve many countries around the world. Traditional rules of origin and place of registration have been unable to adapt to the development of the digital economy. . Countries such as France prioritize unilateralism in the face of tax interests, aiming to "strike first and gain the upper hand" to compete for dominance and say in international tax rules, without considering whether the digital service tax is scientific and reasonable. These countries believe that if digital service taxes are levied on sales revenue, turnover, etc., it will most likely lead to unreasonable problems such as double taxation between countries, so they have ignored the digital service tax.
The report points out that the reform of value-added tax and corporate income tax should continue to be promoted, while the efficiency of tax collection and administration should be improved. Our country is both a major producer and consumer of the digital economy. It is not suitable to levy taxes related to digital service tax in the short term. We should focus on improving the existing value-added tax and corporate income tax systems and establishing tax system rules that adapt to the development of the digital economy. and tax collection and administration systems.
From the perspective of value-added tax, my country’s value-added tax system covers almost all taxable items. However, with the development of the digital economy, new business forms, new industries, and new models are constantly emerging, especially with the increasing number of flexible employees and the increase in enterprise production. The business model has been affected to a certain extent, so we should choose the opportunity to adopt the "positive list" model, carry out pilot work in areas with better development of the digital economy, and gradually adapt to the ever-changing new business formats, new industries, and new models related to the digital economy. business.
From the perspective of corporate income tax, we should accelerate the study of the standard of "significant economic presence" or the standard of "significant digital presence", using various factors such as the IP address of the user's location, the location of the digital platform, and taxable income standards as new connections for enterprises. degree standards, redefining the standards for permanent establishments of enterprises in market countries.
From the aspect of tax collection and administration, various measures of the "Fourth Phase of Golden Tax" should be implemented, and with the help of digital technologies such as blockchain, cross-border transactions on digital platforms should be strengthened while strengthening the protection of key core data of enterprises. Collect and organize summary records of data, etc., to improve the analysis and audit early warning capabilities of "tax big data", and at the same time promote the seamless connection between the tax system and other related systems such as customs to ensure the authenticity and security of tax-related information.
"Manufacturing Blue Book: Digital Innovation Report on China's Manufacturing Industry" was jointly released by Guangdong University of Technology and Social Sciences Literature Press.
