Several Points Of Tax Planning For Electronic Commerce (2)

The recognition of the 3. nature of revenue is that e-commerce has pformed the commodities that are originally provided in the form of tangible property into digital forms, making the boundaries of online shopping and services blurred.

The data and information provided in digital form should be regarded as the provision of services or sales of goods.

The tax law stipulates different tax treatments for the sale of tangible goods, the provision of labor services and the use of intangible assets.

For example, taking the sales revenue of visible goods in e-commerce as a service income will directly affect the application of tax categories and the tax burden.

The sale of goods usually applies to 17% of the value-added tax, while the service income is 5% of business tax.

For example, the royalty income derived from China must be subject to income tax and business tax, while overseas labor services may be exempt from taxation in China.

So taxpayers can enjoy proper tax treatment through tax planning.

The judgement of the 4. permanent establishment is that e-commerce can enable non residents to sell goods to the territory or provide services to domestic users through websites located on Chinese servers.

However, the tax agreements signed between China and foreign countries do not provide any provisions on whether the non resident Internet websites constitute permanent institutions or other issues involving e-commerce.

According to the relevant provisions of the agreement, the "fixed business place, which is specifically designed for the purpose of other preparatory or auxiliary activities of the enterprise", should not be regarded as a permanent establishment, and accordingly, it is not necessary to pay corporate income tax in China.

Whether the activities of servers or websites belong to "preparatory or supplementary nature", and do not constitute permanent institutions in the meaning of tax agreements, have raised a new topic for the interpretation and implementation of tax treaties.

In addition, it is not clear whether the network service provider is an independent agent or a non independent agent of a permanent establishment if it is fixed to negotiate and issue orders in the country through the infrastructure of the network service provider.

5., the development of pfer pricing policy. Because e-commerce has changed the way companies conduct business activities, the value-added activities that have been completed by people now rely more on machines and software.

The rapid pmission of network enables related enterprises to have wider operation space in dealing with the production and sale of specific goods and services.

They can quickly adjust the cost and income share among each other, and formulate a pfer pricing policy to maximize the interests of the whole company.

At the same time, because of the characteristics of e-commerce information encryption system, anonymous electronic payment tools, paperless operation and liquidity, it is difficult for the tax authorities to grasp the specific paction facts of the two parties, which will add considerable difficulty to the tax authorities in determining the reasonable price of the related paction and making tax adjustment.

The payment of stamp duty is 6.. E-commerce has realized paperless operation, and the two sides of the paction often "hide".

It is not clear whether the online order has the nature and function of the paper based contract and whether it needs to pay stamp duty.

From the above, we can see that the current tax policies and regulations have lagged behind the development of the network economy. There are many uncertainties. This is a double-edged sword for tax planning. It can not only bring benefits to the enterprises, but also restrict the rapid development of the electronic business because it is difficult to grasp.

For example, the deduction of VAT input tax and the deduction of fixed assets are two outstanding issues.

In the e-commerce, there is often inconsistent capital flow and logistics.

For example, electronic commerce and electronic supermarket online pactions are through virtual goods warehousing and warehousing procedures, real logistics has not been to the electronic mall or electronic supermarket, and the capital flow is from the buyer to the electronic mall or electronic supermarket, and then to the supplier.

According to the current provisions of VAT, taxpayers who purchase goods or taxable services and pay the freight must agree with the units that sell the certificates of credit and the units providing labor services before they can declare the deductible input tax, otherwise they will not be deducted.

This provision determines the premise of a deduction of input tax, that is, the way of capital flow and logistics must be consistent.

If the enterprises who provide e-commerce platform adopt the method of virtual export and warehousing, the enterprises that purchase goods can not make use of the input tax of raw materials or commodities purchased by e-commerce, will increase the tax burden of enterprises, and make the development of electronic business affairs of enterprises have great restrictions on the type of paction.

At present, China is implementing production value-added tax, and the fixed assets purchased by enterprises are not allowed to deduct the input tax.

In order to ensure the safety, accuracy and speed of online pactions, enterprises engaged in electronic commerce need to invest a lot of money to purchase machinery and equipment, and the policy of deducting the input tax arising from the purchase of fixed assets to some extent restricts the development of e-commerce.

If we try to consume value-added tax on enterprises with high technology content, or reduce their value-added tax rates appropriately, we can lighten their tax burden and promote the further development of e-commerce.

With the rapid development of e-commerce in China, it is necessary to clarify and standardize the tax problems brought about by the new economic mode as soon as possible, and revise and explain the relevant tax laws.

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