One Belt One Road—Tax Issues for Chinese Going-out Companies

Abstract

The One Belt One Road initiative is regarded as the most ambitious foreign policy proposed by Xi Jinping, which involves billions of dollars of infrastructure investment along the routes. It is a great chance for Chinese multinational corporations to enter international market, but tax issues derived from this complicated economic environment need to be aware. Different taxation systems, double taxation on the same source of income and specific regulation on profit shifting relates to transfer price are threatening going-out companies. Based on the analyses of these risks, this paper discusses the countermeasures from national level and enterprise level. China has already taken actions like enhancing tax cooperation mechanism and establishing comprehensive taxation database, going-out companies also should be well-prepared before getting into the world market.