With the rapid development of international trade in services and its special role in promoting efficiency and improving quality of the overall national economy, research on trade in services has become a global frontier topic. Below are the service trade papers I compiled for your reference.
Service trade paper sample 1: Taxation policy paper under my country's enterprise service trade
1. Taxation policies for services trade-related industries need to be improved
(1) Tourism The tax policy of the industry and its shortcomings
The regulations closely related to the tourism industry are the second paragraph of Article 5 of the "Interim Regulations of the People's Republic of China on Business Tax" revised and released in 2008. It is clear that the entire price minus deductible expenses is regarded as the turnover, and the applicable tax rate is 5%. There are the following shortcomings in tourism-related tax policies. 1. The tourism tax-related policy is single, but there are many factors that affect the industry’s tax burden. Tourism tax-related policies are mainly interim regulations on business tax, and lack a comprehensive policy that considers the entire upstream and downstream industries and surrounding service industries. Tourism supporting industries include food, accommodation, transportation, entertainment, shopping and other industries, and the superposition of tax burdens on these related industries will also indirectly drive the tax burden on my country's tourism industry to rise. For enterprises that pay business tax based on ticket income and agency income, the expenses incurred due to the development of their own business cannot be deducted from the turnover tax, and there is the possibility of double taxation. 2. There are few preferential tourism tax policies. For tourist consumers, when traveling and shopping overseas, they generally consider tax-free or tax-refund policies for shopping. However, there are fewer tax policies for domestic tourism and shopping, including Hainan Province’s offshore island tax-free policy and Shanghai’s World Expo Park-related policies during the World Expo. . For developers and providers of tourism services, the preferential tax policies in the tourism industry that can be enjoyed are also very limited.
(2) Taxation policy for the transportation industry and its shortcomings
At present, the transportation industry has implemented a reform from collecting business tax to collecting value-added tax, and the tax rate has changed from business tax 3% to value-added tax 11 % (3% for small-scale taxpayers). The shortcomings of tax policies in the transportation industry lie in the following two points: 1. There are few preferential tax policies for transportation-related industries. Tax policies provide limited support to industries such as transportation equipment manufacturing and support or assistance behind international transportation service companies. For example, in research and development expenses, the input tax on raw material consumption used for business tax items cannot be deducted; and for the logistics industry that has developed rapidly based on Internet commerce, its corresponding warehousing plants can enjoy less land use tax and property tax preferential treatment. 2. Ship registration policies and crew preferential policies are relatively weak. The purchase amount of ships is often huge, and the tax costs such as customs duties and import value-added tax at the time of purchase are relatively high. The tax exemptions and exemptions issued separately for Chinese owners' "flag of convenience" ships are relatively small. In addition, Chinese ships often prefer to hire Chinese crew members, but my country has few preferential tax policies for Chinese crew members in terms of personal income tax.
(3) Tax policies related to enterprises going global need to be improved
The tax policies closely related to enterprises going global are mainly Article 23 of the Enterprise Income Tax Law, and in Finance and Taxation [ Document No. 125 (2009) stipulates in detail the issues related to the credit for overseas income tax of enterprises. In addition, although tax treaties have been signed with more than 110 countries, there are still areas that need to be improved. First, enterprises that need to invest in foreign investments in the form of physical goods and supporting services cannot enjoy the VAT exemption and refund policy if they do not have the right to operate exports. Second, all overseas income obtained by overseas branches that do not have independent tax status should be included in the overseas taxable income of the enterprise in the tax year, regardless of whether it is remitted to China. This makes the enterprise difficult to cope with unforeseen circumstances. When operating risks, it is easy to encounter financial bottlenecks. Third, there is no corresponding tariff or value-added tax reduction or exemption for the import of products (such as ores, crude oil, etc.) or services for invested enterprises that are encouraged and supported by the state, or have strategic needs, and have obvious trade creation effects.
2. Policy recommendations for improving the international competitiveness of service trade-related industries
In accordance with the decision-making and deployment of the Third Plenary Session of the 18th CPC Central Committee, promote the development of certain services in the fields of finance, education, culture, medical care and other services. Open up in an orderly manner and relax restrictions on foreign investment in service industries such as child care and elderly care, architectural design, accounting and auditing, trade logistics, and e-commerce. To accelerate the cultivation of new advantages in participating in and leading international economic cooperation competition and enhance the competitiveness of my country's service trade, it is necessary to improve relevant tax policies to create a good policy environment.
(1) Accelerate the pace of "replacing business tax with value-added tax" and further expand value-added tax to areas related to service trade
It is a common international practice to impose value-added tax on the service industry . At present, tourism, construction, insurance, and finance in my country's service trade projects are still within the scope of business tax payable. In the future, for service projects that are already subject to VAT, it is necessary to innovate in tax refund policies and explore tax exemption and refund policies applicable to producer service industries; for those that have not yet met the conditions to be expanded into the scope of VAT, such as finance, insurance, etc. Services should consider business tax exemptions for cross-border services; explore value-added tax exemption policies that are not limited to technical offshore service outsourcing.
(2) Construct a tax policy system that is conducive to the upstream and downstream development of the service industry chain
Starting from conducive to the development of the service industry, we should build a tax policy system for each link of the service industry chain. and improve relevant tax policies. For example: to promote the development of the tourism industry, you can refer to the preferential policies to support high-tech enterprises and implement a preferential corporate income tax rate of 15% for qualified enterprises; and give tourism enterprises additional R&D expenditures in brand promotion, service improvement, etc. deduct. Pay attention to the training of employees in industries such as tourism, shipping, aviation, etc., and provide individual income tax concessions for specific occupations or positions. In order to stimulate tourists' shopping demand, in addition to duty-free shopping at airports, tax refund policies for overseas tourists shopping can be piloted in some cities, and promotion at suitable tourist attractions can be considered.
(3) Further improve tax policies related to encouraging enterprises to go global
For investment forms with different characteristics such as venture capital, resource acquisition, trade complementarity, and physical export, we will target Formulate preferential policies accordingly. For example, a certain percentage of the investment income of overseas non-listed companies will be exempted from tax exemption; the corresponding tariffs and value-added tax will be reduced or exempted when the local products of the invested enterprises are imported; domestic enterprises will be granted VAT export rebate recognition for export investments in physical goods and related services. Taking into account the possible impact of exchange rate fluctuations on large transactions, companies are allowed to choose the best exchange rate within a certain period of time to calculate and pay corporate income tax; a certain tax-free period is given to corporate profits that are not retained for the purpose of tax avoidance to improve local reinvestment and Expand production and operation capabilities; use collected taxes to establish a tax fund pool to deal with the comprehensive risks of overseas investment, and provide appropriate tax refund assistance when enterprises encounter corresponding risk projects.
Services Trade Paper Sample 2: The Impact of CEPA Implementation on Services Trade Cooperation
The Impact of CEPA Implementation on Services Trade Cooperation between Hong Kong and the Mainland
1980s From the early 1990s to the mid-1990s, due to restrictions on market access in the mainland and other factors, the development of trade in services between Hong Kong and the mainland lagged far behind that of trade in goods [1]. In 1995, Hong Kong's exports of products to the mainland accounted for 71.4% of Hong Kong's outbound processing trade, while Hong Kong's exports of services to the mainland accounted for only 16.7% of Hong Kong's total service exports. Since then, the service trade between Hong Kong and the Mainland has gradually shown an upward trend. Especially after Hong Kong's return to the motherland in 1997, the service trade between Hong Kong and the Mainland has become closer. By 2000, mainland China replaced the United States for the first time as Hong Kong's largest exporter and importer of services trade.
Against the backdrop of the smooth development of trade in services between Hong Kong and the Mainland and the need for transformation and upgrading of Hong Kong’s service economy and Mainland industries, the promulgation of CEPA has received widespread attention for its promotional effect on accelerating cooperation in trade in services between Hong Kong and the Mainland. CEPA mainly involves three aspects: achieving zero tariffs on goods trade between the two places, expanding market access for service trade, and implementing trade and investment facilitation. The Mainland's expansion of market access to Hong Kong's services trade mainly involves 42 industries, including management consulting services, convention and exhibition services, advertising services, accounting services, construction and real estate, medical and dental, distribution services, logistics, tourism, banking, securities and futures Qualification examination for service industries and professional and technical personnel. There are two main ways to open up the service industry: one is complete openness, that is, engaging in franchise operations in the form of sole proprietorship, such as logistics, retail services, etc.; the other is to enter the mainland market and open branches with a lower threshold than the World Trade Organization. Go to institutions such as banks and insurance. Since the implementation of CEPA in 2004, the upward trend in the export and import of services from Hong Kong to the Mainland has become more significant, especially the import of services from Hong Kong to the Mainland. In recent years, Hong Kong and the Mainland have become each other's largest service trade partners, and they continue to maintain an upward trend. Before 2004, the import of services from Hong Kong to the Mainland was basically flat; after 2004, the import of services from Hong Kong to the Mainland increased significantly. Analyzing the total volume of trade in services, in 2010, the service export volume from Hong Kong to the Mainland was HK$230.5 billion, which was twice the service export volume when CEPA was implemented in 2004, accounting for 28.3% of Hong Kong’s total service export volume; the service import volume from Hong Kong to the Mainland It was HK$104.7 billion, accounting for 26.6% of Hong Kong’s total service imports. Analyzing the categories of service trade sectors, Hong Kong's imports from the mainland's service industries have basically remained stable. From 2004 to 2007, Hong Kong's imports of business services, tourism services, and transportation services from the mainland accounted for the same proportions in Hong Kong's total service imports in the corresponding industries. Around 45%, 30%, 25%. In addition to tourism services, the service trade between Hong Kong and the Mainland is mainly transportation trade and trade-related services. The development of these two service trades and Hong Kong's direct investment in the Mainland (especially the Pearl River Delta region) and the resulting "former The "factory behind the store" industrial division of labor pattern is closely related to Hong Kong's status as an international trade center and logistics center [2].
Empirical analysis
1 Theoretical basis
Although CEPA does not establish a unified tariff for external parties, its zero tariff, open service trade and other provisions also apply to the customs union theory. Wiener proposed using "trade creation" and "trade diversion" to measure the effectiveness of the customs union.
The trade creation effect refers to the elimination of tariffs between customs alliance countries, which causes products with higher local production costs to be replaced by products with relatively lower production costs in allied countries, thus new trade is created between allied countries. The trade diversion effect refers to the fact that the tariff protection between allied countries is equivalent to tax reduction discrimination against non-allied countries, causing products originally sourced from non-allied countries with lower production costs to be transferred to allied countries with higher production costs.
2 Model construction and data collection
The Balassa model is a classic model for studying the effects of trade creation and trade diversion. This model assumes that: the income elasticity of import demand is fixed before regional trade cooperation, and the income elasticity of regional demand is greater than the income elasticity of import demand before cooperation, indicating the existence of a trade creation effect; when the income elasticity of import demand after regional trade cooperation If the income elasticity of import demand is less than that before cooperation, it indicates the existence of trade diversion effect. This article attempts to use the Balassa model to compare the income elasticity of import demand between Hong Kong and the Mainland before and after the implementation of CEPA, and then derive the trade creation and trade diversion effects of the two places in the field of service trade. In order to facilitate the examination of the trade creation and trade diversion effects before and after the implementation of CEPA, this paper adds a dummy variable D to the Balassa model, with D=0 before the implementation of CEPA and D=1 after the implementation. This article selects Hong Kong's service import, Hong Kong's service import from the mainland and the total import value of mainland services from 1995 to 2010 as samples for quantitative analysis. Among them, Hong Kong-related services trade data comes from the statistical data published on the website of the Census and Statistics Department of the Hong Kong Government; Mainland service import data comes from the China Services Trade Statistical Yearbook. Since the mainland's service imports by source have not yet been compiled, this article uses the service export values ??to the mainland by destination published by the Hong Kong government to replace the service import values ??within the mainland region.
3 Empirical results analysis
Perform linear regression on the applied Balassa model through Eviews6.0 software. The F test results of each regression equation are significant, and the goodness of fit is above 0.85. As can be seen from Table 1, CEPA has different trade creation and trade diversion effects on Hong Kong and the Mainland. After the implementation of CEPA, the income elasticity of Hong Kong's total service import demand and the income elasticity of import demand from outside the region are both greater than before the implementation of CEPA, indicating that there is a total service trade creation effect in Hong Kong, but there is no Wiener trade creation and trade diversion effect. Specifically, the income elasticity of demand for Hong Kong's total imports increased by 0.00294, while the income elasticity of demand for intra-regional imports decreased by 0.003084, indicating that some service products imported by Hong Kong from the mainland are greater than locally produced. The income elasticity of demand for imports from outside the region increased by 0.005739, indicating that Hong Kong conducts service trade with other countries and regions at lower costs than the mainland. The Mainland's total service trade creation effect is obvious, but Wiener's trade creation and trade diversion effects also do not exist. The income elasticity of the mainland's total import demand increased by 0.14135, and the demand income elasticity of imports within the region decreased by 0.004634, indicating that the cost of some service products imported by the mainland from Hong Kong is higher than that of the local ones. After the implementation of CEPA, the income elasticity of import demand from outside the area is 0.019923 higher than before the implementation of CEPA. Therefore, the mainland has not replaced the service trade of other countries with Hong Kong's service trade. It can be seen that Hong Kong and the Mainland have not yet fully enjoyed the preferential policies of CEPA.
Conclusions and Suggestions
This article analyzes the development status of the service industry in Hong Kong and the Mainland and the export competitiveness advantages of sub-sector service industries. It shows that: Hong Kong and the Mainland have strong competitiveness in transportation, tourism and finance. There is strong complementarity in services trade. In terms of transportation and finance, where the mainland has obvious comparative disadvantages, Hong Kong, as an international entrepot trade center, shipping center, trade center and financial center, has obvious comparative advantages; while in the field of tourism, where Hong Kong has obvious comparative disadvantages, the mainland has stronger comparative advantage. In terms of service industry structure, Hong Kong’s rich experience, outstanding talents and international standards in the fields of conventions, exhibitions and intermediaries can make up for the corresponding shortcomings of the mainland. Therefore, the implementation of CEPA will be beneficial to the economic development of the two places. According to statistics, the trade dependence between Hong Kong and the Mainland is increasing year by year, and the relationship between trade in services is getting closer. However, through the Balassa model test, it was found that there is only a total trade creation effect between Hong Kong and the Mainland, and there is no trade creation effect and transfer effect within the region, indicating that the implementation effect of CEPA is not sufficient in the field of service trade between Hong Kong and the Mainland. reflect. The trade in services between Hong Kong and the Mainland is restricted by factors such as the Mainland's market system and government barriers. It is still necessary to vigorously promote the implementation of CEPA policies and accelerate the system docking and resource integration between the Mainland and Hong Kong in terms of service industry systems. Different social and legal systems, humanistic environment, language environment, etc., such as legal systems, accounting standards, etc., will cause obstacles in the actual operation of cooperation in the service industry between the two places. Therefore, relevant government departments should do the following: (1) Strengthen the implementation of CEPA preferential measures, further improve the mainland's economic environment, improve service efficiency, and reduce the transaction costs for Hong Kong businesses to expand service trade to the mainland. (2) Although CEPA has lowered the threshold for Hong Kong’s trade in services to enter the mainland market, the time-consuming and labor-intensive approval process and the irregularities in the operation process have greatly weakened the promotion effect of CEPA on the trade in services between the two places.
(3) As an Asian financial center, Hong Kong’s financial advantages should be brought into play in the field of service trade, and Hong Kong’s RMB clearing system should be improved as soon as possible, Hong Kong’s RMB offshore market should be established, and restrictions on different currencies in service trade should be eliminated. At the same time, to give full play to Hong Kong's financial system, Hong Kong banks should open more business institutions and representative offices in the mainland to provide advanced financial services to mainland enterprises and strengthen service trade cooperation between the two places in the financial industry.
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