The Chinese Perspective on International Tax Law

Abstract This chapter looks at international tax reform in the digitalized economy from a Chinese perspective. As the second largest country of the digitalized economy but still a developing country, China is currently confronted with many issues concerning its stance on the complex goals of tax base security, fairness, and cooperation in the digital economy. Yet China needs a clear position because the competition and cooperation of market countries’ taxation rights relates not only to China’s national taxation interests but also to the world’s industrial structure, and it will greatly affect the reshaping of the global political and economic structure in future years. In the era of the digitalized economy, there is a need for the international taxation governance mechanisms to be reshaped. With the increasingly deepening recognition in the multi-dimensional framework of cross-border transactions in the digitalized economy, there is a need for Chinese thinking on and a Chinese plan for the global governance of international taxation in the digitalized economy. This is particular so with regard to multi-party competition; patterns of residence, source, and market; tax havens; as well as in the urgent need to deal with problems of tax base erosion and tax base mismatch,.