China News Service, Beijing, December 5 (Liu Wenwen) Not long ago, the G20 Finance Ministers and Central Bank Governors reached a historic agreement on the establishment of a more stable and fair international taxation framework. This reform will reshape what has been in operation for nearly a hundred years. The current international tax rules have a profound impact on the global layout and investment operations of multinational companies.
When historical changes are at hand, how should China deal with the opportunities and challenges it brings?
The 18th International Financial Forum (IFF) will continue to be held on the 5th.
In the "Global Tax Policy: Reform and Impact" sub-forum, a number of experts conducted in-depth exchanges.
Zhou Xiaochuan, former governor of the People's Bank of China and chairman of the IFF conference, believes that the past international taxation system has been unable to adapt to the new economic activity model, and the reform of the international taxation system will help promote international taxation coordination and cooperation.
"From the past, fiscal and taxation issues are all countries’ fighting on their own. They rarely conduct in-depth research and discussion and form common actions. However, with the development of economic globalization, especially the development of the digital economy, this issue must be mentioned. On the international agenda."
Solving these problems is by no means overnight. Zhou Xiaochuan said bluntly, “Taxation requires theoretical basis. It depends on whether countries can have a consistent understanding of accounting standards and auditing in terms of measuring corporate profits and many financial indicators. If the theoretical basis is not sufficient, coordinate It’s difficult to get up, and there will be a lot of bargaining.” He likened taxation and taxation to a game. “Global multinational companies, some'tax haven' governments, and some law firms and consulting companies specializing in tax avoidance services. They are all very smart and experienced. It is foreseeable that there will still be a game of wit and courage like a cat and a mouse in the future."
Zhou Xiaochuan also pointed out that some problems in income distribution must be resolved from the perspective of capital gains.
For cross-border tax coordination, we should seek to establish a mechanism and an organization to coordinate arrangements, because behind the interests of various countries, the demand for global public expenditure does exist, especially after the emergence of the global epidemic, this demand has become more obvious.
This coincides with the view of Allianz Chief Economist Lu Ruide. He believes that in order to solve the tax revenue distribution between rich and poor countries, we must look at the problem from a forward-looking perspective. Countries around the world should cooperate closely and continue to encourage The flow of capital between countries establishes a new fiscal and taxation system facing the future.
Jia Kang, Dean of the China Academy of New Supply Economics, emphasized the enlightenment for China, “While observing the coordinated operation and development of the external world, especially the developed economies, we must also actively consider following the trend of the world and doing a good job in harmony with the international community. Further social coordination.” “China’s modernization will inevitably include the modernization of the tax system, and the modernization of the tax system will inevitably include China’s task of overcoming difficulties in the deep-water period of reform and implementing the system construction task of increasing the proportion of direct tax. The meaning is quite obvious."
For Chinese companies in the wave of international tax reform, reform is imminent. Facing the unprecedented international changes in a century, Chen Zhiwen, the global tax director of Midea Group, admitted that there is pressure, "As the real economy and traditional manufacturing industry, new tax policies The promulgation of the tax law requires appropriate personnel to conduct research on tax laws, and the systematic construction of this part of taxation and data has greatly increased the company’s costs.” But he also said that Midea has been determined to face the changes in the global tax environment and improve Pay attention to international taxation, examine its impact on itself, improve the internal management level of the enterprise, prepare early, and actively respond.
All experts and scholars participating in the conference believed that even if there is still a long way to go in the future, the reform will not be smooth sailing, but under the framework of international cooperation, they are still confident of a win-win result.
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