Tax jurisdiction includes two basic forms: resident jurisdiction and regional (source) jurisdiction. The principle that a country exercises tax jurisdiction does not violate the provisions of international laws and treaties. There is no uniform standard in the world, and governments of all countries can freely choose tax jurisdiction. Therefore, in order to straighten out the various relations in international taxation, the ultimate way out is to coordinate the tax jurisdictions of various countries, and the ideal model is to implement the same tax jurisdiction in the world. But in fact, it is impossible to do this. The reasons are: on the one hand, because there is no political authority beyond the state; On the other hand, the level of economic development varies greatly among countries. Developed countries tend to implement resident jurisdiction, while developing countries tend to implement source jurisdiction. Therefore, it is impossible to completely unify the tax jurisdiction. Only through mutual coordination can we gradually narrow the differences, so as to promote the rationalization of the international tax benefit distribution pattern and promote the development and prosperity of the world economy.
(II) Mitigation and Elimination of International Double Taxation means that two or more countries levy the same or appropriate taxes on the same taxpayer engaged in transnational economic activities at the same time, that is, overlapping taxation occurs. International double taxation is the result of the overlapping tax jurisdictions of various countries, which has a negative impact on the development of international economy: on the one hand, international double taxation increases the actual burden of transnational investors, which is not conducive to the international flow and application of funds; On the other hand, international double taxation affects the international flow of goods, labor, talents and technology, and hinders the allocation of international resources. Therefore, alleviating or even eliminating international double taxation is the most practical problem in international tax relations.
To avoid international double taxation, firstly, we can adopt the method of unilateral exemption, that is, a government takes measures unilaterally to exempt its taxpayers from the double burden without obtaining the consent of the other country. Second, bilateral exemption can be adopted, that is, the signing of bilateral tax agreements between the two countries does not coordinate the tax burden of their respective multinational taxpayers, and international double taxation is exempted.
(3) International Tax Avoidance and Anti-tax Avoidance International tax avoidance means that taxpayers cross the border by non-illegal means, and achieve the purpose of reducing or exempting taxes through the flow or non-flow of people or things. In other words, international tax avoidance is not an illegal act, but takes advantage of the defects of tax laws in various countries. Therefore, in the tax collection and management activities, international tax avoidance is a very difficult problem for tax authorities.
Because international tax avoidance affects the fiscal revenue of governments, all countries take active measures to prevent and stop international tax avoidance. This is called anti-tax avoidance. The main measures against tax avoidance are:
First, formulate specific measures from the tax obligation. For example, the tax law stipulates that a third party related to taxpayers must provide tax information, or the price of some transactions of taxpayers must be recognized and agreed by government departments.
Second, constantly adjust and improve the tax law. Such as canceling deferred tax payment, restricting tax avoidance between affiliated enterprises through transfer price, and controlling the overseas operating profits of subsidiaries to stay in tax havens for a long time.
Third, strengthen tax collection and management. Such as setting up professional anti-tax avoidance agencies and strengthening the examination of taxpayers' bank accounts.
Fourth, strengthen international tax cooperation. For example, exchange of tax information between countries, or multilateral international tax avoidance prevention measures led by international tax organizations.
(IV) International Tax Agreement An international tax agreement refers to an agreement or treaty signed by two or more sovereign countries in accordance with the norms of international relations, in order to coordinate with each other in handling the taxation affairs of transnational taxpayers and other tax affairs. Tax agreements belong to the category of "treaty law" in international law, and they are legally binding on the countries concerned with the same effect as domestic laws.
The earliest tax treaty in the world is 1843, which was signed by Belgian and French governments. The agreement is mainly to solve the problems of mutual cooperation and information exchange between the two governments on tax issues. /kloc-for more than 0/00 years, in order to meet the needs of the continuous development of international tax relations, international tax agreements have developed rapidly from single to comprehensive and from bilateral to multilateral. Especially since the middle of this century, the signing of tax agreements between countries has been very active and expanding. According to statistics, there are currently more than 2,000 tax treaties that have come into effect in the world, and two international tax treaty models with worldwide significance have been formed: proposed by the United Nations expert group.
Model Agreement for Avoidance of Double Taxation between Developed and Developing Countries (referred to as the United Nations Model, the same below) and the Model Agreement for Avoidance of Double Taxation on Income and Property proposed by the Organization for Economic Cooperation and Development (referred to as the OECD Model, the same below). The content and structure of the two models are basically the same, which are used to guide the signing of tax treaties in various countries. The next goal should be to finally form an international tax convention recognized by all countries in the world and give full play to the normative role of tax treaties in adjusting international tax relations.
(V) Distribution of international income and expenses The distribution of international income and expenses refers to the principles and methods for the distribution of income and expenses among transnational taxpayers (affiliated enterprises). Generally speaking, the head office of a multinational company is related to its branches, the parent company is related to its subsidiaries, and a branch or subsidiary in the same multinational company is related to other branches or subsidiaries. These are all called affiliated enterprises.
With the goal of maximizing its own interests, transnational affiliated enterprise groups consider the distribution of its international income and expenses in an all-round way, make use of the differences in tax systems of various countries, so that their income can be obtained in the most favorable place and time, and their expenses can be incurred in the most favorable place and time, so as to avoid part of the tax payable and obtain greater economic benefits. The method is usually realized by using the difference of income tax rates in the countries where the affiliated enterprises are located and adopting transfer pricing. Because the transfer pricing of affiliated enterprises involves the tax revenue of relevant countries, it must be adjusted and standardized.
Of course, the above five aspects are only some basic problems in international tax relations, and international tax also involves other contents, such as tariffs, tariff barriers and tax preferences in foreign relations.