Shanghai Taxation Helps Cross border Enterprises Proactively Respond to Changes, and the "Global Minimum Tax" has been gradually implemented this year. Departments | Enterprises | Shanghai
In recent years, as more and more enterprises in Shanghai go global, how to deliver tax services to the areas where enterprises need them the most and improve their risk resistance has been a concern for the Shanghai tax department. In recent visits and research, the Cross border Taxation Special Research Group of the Shanghai Municipal Taxation Bureau of the State Administration of Taxation found that many multinational enterprises are facing new challenges in cross-border taxation.
Two years ago, a major event occurred in the international tax community. At that time, 136 tax jurisdictions around the world jointly issued a statement on the "dual pillar" plan to address the challenges of economic digital taxation, which stipulated the world's minimum corporate income tax rate to curb tax evasion by multinational corporations. And 2023 is the year when the rules of the Declaration are gradually implemented, and many multinational enterprises are facing the risk of tax changes and even double taxation.
"As a globally leading intelligent hardware platform enterprise, Huaqin Technology has overseas manufacturing bases in India, Indonesia, Vietnam, and other places. Faced with such cross-border tax changes, enterprises often have to passively respond." Gui Chunjuan, CFO of Huaqin Technology Co., Ltd., told the tax department that the complex system and logic of the "dual pillar" rules bring more uncertain overseas tax risks. Faced with this hanging "boot", how can enterprises keep up with the latest changes in international tax forms, prepare and respond in advance, and urgently need relevant departments to provide policy interpretation.
Faced with the anxiety of "going global" enterprises, the research team of the Shanghai Taxation Bureau gave a detailed introduction to the "dual pillar" tax reform plan to Gui Chunjuan on the spot, reminding enterprises to evaluate the impact of international tax reform on their global business layout, and put forward suggestions for enterprises to cope with the "global minimum tax".
At the same time, the research team sorted out the basic ideas for solving cross-border tax related issues and conducted policy interpretation from three dimensions: pre -, during -, and post event. "This kind of 'face-to-face' communication and counseling not only helps us solve policy doubts, but also makes us feel very reassured," said Gui Chunjuan.
Of course, a single policy explanation is not enough to solve all the difficulties faced by enterprises. The challenge of cross-border taxation for enterprises going global is almost a long-term one. "In the current complex global economic situation, international tax rules are undergoing deep adjustments. In short, we have always been in a 'changing' environment," said Zhou Junqing, a key figure in international tax business who participated in this survey.
Only by actively responding to change can we win in the process of change. After a series of investigations, the special research team focused on the Pudong New Area where "going global" enterprises are concentrated, combined with country reports, lists of domestic and foreign listed companies in Pudong, and other data, to comprehensively identify the "going global" enterprises that may be affected by the "global minimum tax". With the help of the international tax team, we have carefully reviewed and organized detailed introductions and response methods for the "dual pillar" plan, and carried out overseas tax risk promotion activities for large "going global" enterprises under the background of the "dual pillar", to help enterprises reduce compliance costs to the greatest extent possible.
At the same time, in order to establish a long-term working mechanism, under the recommendation of a special research group, the Shanghai tax department has set up the city's first "dual pillar" consulting position in the tax service hall at the Lianchi Model Worker Innovation Studio, forming a "1+N" service model. That is, to establish one consulting position, rely on "N" international tax team backbone, fully utilize the Yangtze River Delta Model Worker Studio platform, accurately answer enterprise difficulties, widely collect enterprise needs, and continue to provide tax service guarantees for taxpayers to "go out".
