(1) Mutual Negotiation

All China’s tax treaties include mutual negotiation clauses. These clauses constitute the legal framework for the competent authorities of both contracting countries to resolve tax issues through mutual consultation. Since the implementation of the China-El Tax Agreement in 1985, the Chinese tax authorities have actively negotiated with the tax authorities of relevant countries on specific cases and resolved a series of serious and particularly major tax disputes. For example, in 1998, a Chinese shipping company was involved in several disputes. Subsidiaries established in Asian countries are subject to varying degrees of tax discrimination. Some items that should not be taxed are taxed, and items that are not taxable are included in the taxable scope. A certain country also froze the bank deposits of Chinese companies, leaving Chinese ships stranded in ports and having to pay hundreds of thousands of dollars in port usage fees every day. After the company submitted the relevant case to the State Administration of Taxation, we quickly started negotiations with the other party and properly resolved the dispute, recovering the economic losses for the Chinese company. In recent years, the Chinese tax authorities have also properly resolved: (1) the dispute between a Chinese airline and the Russian tax authorities over the payment of road construction tax and cultural facilities tax; (2) the tax dispute between a Chinese financial institution and the Japanese tax authorities ; (3) A dispute between a Chinese-funded enterprise in China and the Pakistani tax authorities over the tax-free treatment of interest.

When "going global" companies and individuals encounter tax problems in countries that have not signed tax treaties with China, they do not rule out the possibility of the tax authorities of the two countries settling the disputes through consultation. In terms of specific work, China has done some tentative work and achieved good results. For example: Although China and Uruguay do not have a tax treaty, a Chinese shipping company encountered tax problems in Uruguay and successfully resolved the tax dispute through friendly negotiations between the tax bureaus of China and Uruguay.

(2) Information exchange

International tax information exchange refers to the exchange of information between the competent authorities of the contracting parties to a tax agreement, an information exchange agreement or a mutual administrative assistance agreement for the purpose of implementing the agreement, agreement and the requirements of the agreement. including domestic laws and regulations corresponding to tax types, and the act of mutually exchanging required information. It is an international obligation that contracting parties should undertake and is also the main way to carry out tax collection and administration cooperation between relevant countries. Its main purposes are twofold: one is to verify certain facts for the correct implementation of tax treaties; the other is to assist tax treaty contracting parties in implementing their domestic tax laws. Information exchange can, to a certain extent, eliminate the contradiction between the borderless nature of taxpayers' transnational operations and the borderless nature of tax administration, and effectively combat international tax evasion, tax fraud and abuse of tax treaties. Therefore, it is an important link between countries. One of the important elements of cooperation between tax authorities.

Information exchange is generally limited to contracting countries that have signed tax treaties, information exchange agreements or mutual administrative assistance agreements. Very few tax information exchanges are implemented through domestic laws. The exchange of information must be carried out through the competent authorities, and the relevant documents for the exchange of information must be signed by representatives of the tax authorities of the relevant countries. The tax authority in China is the State Administration of Taxation. Types of information exchange include special information exchange, automatic information exchange, spontaneous information exchange, industry-wide information exchange, concurrent tax inspections and authorized representative visits, etc. Special information exchange refers to the act in which the tax authorities of one country raise specific questions about a domestic tax case and request the tax authorities of another country to provide relevant information and assist in verification based on tax treaties or other legal tools. Automatic information exchange refers to the act of the tax authorities of one country automatically providing information on special income obtained by taxpayers to the tax authorities of another country in batches. Spontaneous exchange of information refers to the act of the tax authority of one country voluntarily providing the tax authority of another country with information that it considers useful to the tax authority of the other country. Industry-wide information exchange refers to not targeting specific taxpayers, but targeting a certain economic sector. The tax authorities of the agreement or the contracting parties to the agreement jointly discuss the operation methods, fund operation models, price determination methods, tax evasion, etc. of a certain economic industry. New trends in tax avoidance and mutual exchange of information. Simultaneous tax inspection refers to the act in which the tax authorities of two or more countries simultaneously and independently inspect the tax matters of taxpayers with the same or related interests in their respective countries and exchange relevant information with each other. A visit by an authorized representative refers to an on-site visit by a tax official of one country to another country with the authorization of the tax authority of the home country and at the invitation of the tax authority of another country, or with the consent of the tax authority of another country, to obtain tax revenue The act of collecting and managing the required information.

The 90 tax treaties and two arrangements signed by China all include "information exchange" clauses (usually Article 26), which stipulates: "In order to implement the agreement and domestic law, the contracting countries shall exchange information Tax Intelligence”. In 2006, the General Administration promulgated the "Operation Procedures for International Tax Information Exchange" to further standardize China's information exchange work.

(3) Mutual administrative assistance

Mutual administrative assistance in tax administration first appeared in the 1980s. That is, one country assists or exercises tax jurisdiction on its behalf at the request of another country to achieve cross-border cooperation. Foreign tax debt recovery or other cross-border tax claims. There are two ways of mutual taxation and administration assistance: one is bilateral mutual taxation and administration assistance, that is, provisions similar or identical to Article 27 of the Organization for Economic Cooperation and Development Model Tax Agreement are included in the bilateral tax agreement, and then a tax agreement is concluded on this basis. Both parties provide assistance to each other.

The other is multilateral mutual assistance in tax administration, that is, multiple countries sign multilateral agreements on mutual assistance in tax administration and provide mutual assistance on this basis. There are currently two very influential multilateral mutual assistance agreements in tax administration in the world. One is the Agreement on Mutual Administrative Assistance in Tax Matters, which was born in Strasbourg in 1988. Any country that agrees to the agreement can become a party to the agreement through domestic legal procedures. So far, Azerbaijan, Belgium, Canada, Denmark, Finland, France, Iceland, the Netherlands, Norway, Poland, Sweden, and the United States have signed the agreement. The other is the Nordic Tax Administration Mutual Assistance Agreement, which was born in Northern Europe in 1989. It is a multilateral mutual assistance agreement signed by Denmark, Greenland, Finland, Iceland, Norway, Sweden and other Nordic countries.

Currently, mutual assistance in tax administration is still under further study as it involves China’s domestic laws and the supporting construction of domestic administrative measures. However, for a long time, the tax authorities of China and other countries have actively carried out mutual visits, provided internship training opportunities, technical cooperation, and provided consultation, which have promoted cooperation and exchanges. Therefore, these exchanges should fall into the broad sense of international mutual assistance in tax administration. For example, the General Administration received visits from tax bureaus from developed countries such as the United Kingdom, the United States, France, and the Netherlands, and developing countries such as Mongolia, Uzbekistan, and Kazakhstan. The leaders of the General Administration also visited tax authorities from the United States, Russia, France, Italy, Austria, Hungary, and other countries. A visit was made. In March 2007, China and the Taxation and Customs Administration of the Kingdom of the Netherlands signed a Technical Cooperation Arrangement between the State Administration of Taxation of the People’s Republic of China and the Taxation and Customs Administration of the Kingdom of the Netherlands for 2007-2009. In that year, the tax authorities Experts have been arranged to come to China for consultation on income analysis and forecasting and corporate income tax, and personnel have been sent to the Netherlands for a two-week corporate income tax training based on the content of the Arrangement. At the same time, China has also provided services to developing countries in Asia, Africa and other countries. China has provided assistance to more than 100 tax officials.

(4) Cooperation with international organizations

Since China implemented its reform and opening up policy, international exchanges and cooperation have increased. , international exchanges and cooperation in the field of taxation have also been carried out increasingly extensively.

1. Project cooperation with the United Nations Development Program (UNDP)

Since the reform and opening up, China has cooperated with the United Nations Development Program (UNDP). UNDP has carried out four phases of project activities. The topics currently involved include: business process reengineering and technical consultation on the business needs of the third phase of the Golden Tax, local tax reform, environmental tax, non-resident management, human resources management, etc.; convening domestic seminars; organizing overseas In addition, the "State Administration of Taxation UNDP Project Achievements" (2006), the "State Administration of Taxation UNDP Project Achievements" (2007) and the "State Administration of Taxation UNDP Project Research Papers on Training in the United States" were also published. Collection", on the one hand, it shows the project research results, and on the other hand, it can share the results with the relevant departments and personnel of the tax system. The implementation of the project in 2007 is China's tax reform, system innovation, resource optimization, and rational allocation. and specific operations, etc.

2. Project cooperation with the Organization for Economic Cooperation and Development (OECD)

First, China’s OECD special research team actively dispatched personnel. Participated in many meetings and activities of the OECD Finance Committee’s five working groups on tax treaties, tax policy analysis and statistics, multinational corporate taxation, international tax avoidance and evasion, and consumption taxation.

Second, China and OECD. We conducted multiple policy dialogues on topics such as information exchange agreements and tax treaties, invited OECD experts to introduce internationally accepted practices, put forward revisions to relevant policies and draft laws in the above areas, and reviewed China’s legislative decisions and further development in the above areas. The research has played a great role in promoting the taxation.

Third, multiple training courses were held at the Yangzhou Taxation Training Institute and the OECD***, including: financial instrument taxation, tax treaties, transfer pricing guidelines, Value-added tax policy and management. As OECD’s technical assistance to China, these trainings have greatly helped improve the professional quality of the tax team.

The fourth is to actively utilize the resources of the OECD Multilateral Training Center and dispatch personnel. I participated in several courses organized by OECD in Ankara, Turkey, Seoul, South Korea, Vienna, Austria, and Budapest, Hungary, and learned OECD’s knowledge on transfer pricing, tax treaty negotiation, tax incentives, tax policy models, tax treaties, SME tax audits, and taxation. Advanced experience in policy analysis, taxation of financial instruments, international anti-tax avoidance and tax evasion, auditing of multinational companies, and non-resident management.

Through the technical assistance of the OECD, China has received help and improvement in many fields. For example, through exchanges with OECD experts, we have implemented taxation on abandonment and offsets for cross-border property losses during the implementation of the agreement. We have a deeper and clearer understanding of concepts such as tax deductions, and a clearer understanding of the relationship between treaties and domestic laws, which are conducive to better implementation of tax treaties and safeguarding China’s tax rights and interests; in the field of anti-tax avoidance, we have mastered the knowledge through exchanges and learning They learned the basic means and identification skills of cross-border malicious tax planning, and discussed countermeasures with international colleagues.

In terms of tax audit, through training, we learned various audit methods such as gross profit margin method, capital comparison method, cash balance method, method testing method, etc., learned about the EU tax audit procedures, and fully experienced the computerized (EDP) audit. Popularization and improvement in OECD member countries.

3. Cooperation with other international organizations and regional tax organizations.

Organized and participated in the 2007 annual consultations of the International Monetary Fund (IMF) led by the People's Bank of China; also sent people to participate in the 2007 "Financial Planning and Policy Course" jointly organized by the People's Bank of China and the IMF ( Dalian) and "Natural Resource Taxation and Fiscal Transparency Course" (Washington). It has also participated in a series of international cooperation activities such as the Forum on China-Africa Cooperation led by the Ministry of Foreign Affairs.

In terms of cooperation with regional tax organizations, we sent delegations to participate in the annual meetings, joint training and working-level meetings of the Leedsberg Conference Mechanism (LCG), the Asian Tax Administration and Research Group (SGATAR), Asian Tax Forum (ATF), United Nations International Tax Expert Committee Meeting and United Nations Conference on Development and Financing, International Fiscal Association (IFA) Annual Meeting and Executive Committee Meeting, Inter-American Tax Administration Center (CIAT), European Organization for Tax Administration (IOTA), Various meetings of regional tax organizations such as the Commonwealth Tax Administration Organization (CATA) and the Association of Tax Agents in Asia and Oceania (AOTCA).