Improvement of International Taxation Legal System in the Context of Belt and Road

Abstract

In the critical period of promoting the implementation of the "Belt and Road" initiative, and at the key point of China's construction of a new open economic system, in order to adapt to China's transformation from a capital-importing country to a capital exporting country, it is necessary to strengthen the regulatory function of taxation and establish an international tax legal system oriented to incentivizing the export of capital. Specifically for infrastructure investment, the current tax legal system should be adjusted, the tax credit system in the Enterprise Income Tax Law should be improved to maximize the elimination of double taxation; while improving the network of bilateral tax agreements, the length of time for the recognition of "construction-type" permanent establishments in the tax agreements should be relaxed, and more tax concession credit clauses should be added, so that China's tax interests as a resident country will be safeguarded and the tax benefits of the country will not be affected. At the same time, we need improve the network of bilateral tax treaties, relax the time limit for recognizing "construction-type" permanent establishments in tax treaties, and add tax concessions and credits, so as to safeguard the tax interests of China as a resident country while striving for more tax concessions for enterprises investing in overseas infrastructure.