Brics Tax Expert Meeting Held In Hangzhou To Focus On Digital And Shared Economy

2013, New Delhi, India.

With the signing of the first BRIC tax official meeting communiqu, the magpie's tax cooperation has opened a new journey.

2017, Hangzhou, China.

On the other hand, the warm invitation of China has been issued. The fifth BRICs tax Commissioner meeting will be opened in the near future.

In the past five years, the BRIC spirit of "openness, tolerance, cooperation and win win" has witnessed the deepening of tax cooperation among BRICs, and its effectiveness has been emerging, contributing to the "tax power" for BRICs cooperation.

The BRICs cooperation has successfully passed the "golden ten years". Market opening, capital circulation, trade development and cultural blending have achieved a series of fruitful results.

BRICs tax cooperation has also emerged from scratch, from simple to deep, showing vigorous vitality. Leaders of the five countries have exchanged views on tax cooperation many times, and have reached a series of important consensus.

On July 2014, at the sixth meeting of leaders of BRICs in Brazil, the participating countries jointly issued the "Fortaleza declaration". They proposed that taxation on the areas where economic activities should be carried out should follow the principle of achieving sustainable development and strengthen the work of dealing with tax base erosion and developing tax information exchange.

In September 2015, the seventh meeting of the leaders of the BRICs countries held in Russia, and the UFA declaration was put forward. The BRICs countries will be more active in participating in the formulation of the international tax rules, and strengthen cooperation in curbing the erosion of the tax base and the profit pfer (BEPS), and strengthening the construction of tax pparency and tax information exchange mechanism.

On October 2016, at the eighth meeting of leaders of BRICs in India, the participating countries jointly issued the "Goa declaration", stressing that profits should be taxed in the place where economic activity occurs and value creation, and welcoming countries and international organizations to help developing countries strengthen tax capacity building.

Under the impetus of high-level meetings, the BRICs tax departments established the same frequency linkage.

Long term meeting mechanism.

The mechanism is committed to implementing a series of consensus reached by G20 leaders summit and BRICs leaders meeting on global tax administration, strengthening tax coordination and cooperation among BRICs, and jointly coping with challenges in the international tax field.

In 2013, the first BRIC tax Commissioner meeting was held in India, and the tax commissioners from China, Brazil, Russia, India and South Africa attended the meeting.

The meeting reached a consensus on tax policy and international tax management, and clarified seven aspects of cooperation: strengthening tax collection and management capacity building, cracking down on malicious tax planning, avoiding tax actions, and promoting effective tax information exchange.

With the deepening of cooperation, the BRICs tax departments have already achieved a number of cooperation results in reducing the tax burden of cross-border taxpayers, resolving tax disputes and coping with the BEPS problem, thus effectively enhancing the right to speak in the international tax administration system of developing countries and emerging market countries.

China's tax authorities actively carry out taxation with other BRICs tax departments.

It will contribute to China's "China plan" and "China's wisdom" for tax cooperation of BRICs.

On November 2015, at the third BRICs tax bureau meeting held in Moscow, Russia, Wang Jun, the director general of the State Administration of Taxation, proposed that the BRICs should increase cooperation in pfer pricing, automatic information exchange and other fields through the response to the BEPS project. The proposal of pnational tax avoidance, zero tolerance of enterprises' "gray profits", and joint protection of the tax rights and interests of various countries and the world tax order and other initiatives were agreed by the representatives of the participating countries.

On December 2016, at the fourth meeting of the BRIC tax Commissioner, held in Mumbai, India, Wang Jun proposed to actively explore the effective legal framework for tax cooperation, further implement the G20 Hangzhou Summit on promoting inclusive development, and jointly enhance the tax collection and management capacity of developing countries.

Exploration and Exploration -- bilateral cooperation has yielded fruitful results in the past five years.

"The effectiveness of cooperation between China and other BRICs in the tax sector is also reflected in the signing of bilateral tax treaties."

According to Liao Tizhong, director general of the international taxation department of the State Administration of Taxation, China has signed tax agreements with other four BRICs countries. These tax agreements effectively protect the legitimate rights and interests of "going out" and "importing" enterprises, and provide a reliable tax anticipation for cross-border taxpayers in BRICs.

In October 2014, China and Russia signed a new agreement to avoid double taxation, while reducing the tax rate on investment income of the country of origin, and increasing the terms of preventing the abuse of the tax agreement.

In August 2016, China and India amended the agreement on the Sino Indian tax agreement, which provided a basis for cooperation between China and India in coping with the BEPS issue.

The tax agreement between China and Brazil was signed in 1991. It is the first tax agreement signed by our country and Latin American countries. It has played an important role in raising tax certainty and eliminating tax disputes for taxpayers in both countries.

In addition, the bilateral tax treaties between China and South Africa have been implemented well, providing strong tax support for bilateral economic and trade investment, technical cooperation and personnel exchanges.

The successful signing and revision of bilateral tax treaties with other BRICs countries have jointly optimized the business environment among BRICs.

Under the framework of the original tax agreement signed between China and Russia in 1994, the restricted interest rates on dividends, interest and royalties were all 10%. In the framework of the revised tax agreement in 2014, the dividend clause increased by a low tax rate of 5%, and the interest rate and royalty rate decreased to 5% and 6% respectively.

In 2015, China and Russia also signed a protocol to convert interest to tax exemption in the source country, which has a positive effect on encouraging the two enterprises to increase investment in the other side.

As the legal basis of bilateral tax cooperation, tax treaties play an important role in reducing tax burden and resolving tax disputes among cross-border taxpayers.

For example, the tax authorities in China and Russia have agreed on a tax dispute between a Chinese enterprise and a permanent organization in Russia, which has saved nearly three hundred million yuan for taxpayers. The tax authorities in China and India have agreed on a case in a Chinese enterprise, avoiding taxpayers' expenditure of about 5 million yuan and high litigation costs for taxpayers.

The State Administration of Taxation has made great efforts to increase services for enterprises invested by BRICs in China in order to avoid duplication of taxes.

At the same time, the Chinese tax authorities apply the tax agreement to the Chinese BRIC investment enterprises accurately, reduce the tax burden on their investment in China, ensure that they get a fair tax treatment, and enhance the investment confidence of pnational business taxpayers.

Highlights: BRICs tax capacity-building highlights

As China's largest tax cut since 1994, the camp has attracted worldwide attention.

Under the background of wide coverage, tight time and high complexity, the pformation of battalion to tax system has achieved the effect of stable tax system, small organization and implementation, large tax reduction and large dividend reform. It has successfully enhanced China's economic influence and has been recognized by international organizations and foreign experts.

Nagawa Kibayashitaro, deputy secretary of OECD, hopes that all countries can share and learn from China's tax reform experience and speed up the construction of modern tax system.

As the second largest population in the world, India launched the largest tax reform in 70 years in July 1st this year. The implementation of a unified GST (goods and services tax) system across the country is conducive to eliminating duplication of taxes, reducing tax disputes and simplifying tax collection and administration, and promoting the development of India's domestic economy.

At the same time, BRIC countries continue to accelerate the pace of tax modernization in order to effectively cope with the opportunities and challenges brought by the digital economy.

Russian Federation Taxation Bureau is implementing the new digital pformation. IT technology has been widely applied in the tax collection and management process, effectively improving the taxpayer's compliance with tax law, and ensuring the steady growth of tax revenue.

At present, the Russian tax collection and management system can realize a household type taxpayer file enquiry, and use the unique tax identification code to collect all the relevant business activities information of taxpayers.

Over the past ten years, Brazil's tax collection and management capabilities have also been significantly improved.

At present, the government of Brazil is striving to carry out the national tax simplification and improve the business environment project. It will effectively improve the business environment of Brazil and expand the share of international trade by simplifying the establishment of enterprise processes, improving the national land information management system, establishing standardized electronic invoices, and developing and applying the integrated foreign trade system.

The tax bureau of South Africa vigorously promoted the construction of electronic tax. In 2006 -2015, the amount of tax related business handled by electronic channels increased by 12 times. 55.48% of the value-added tax rebate business could be completed within 48 hours, and the certificate of tax payment was electronically opened, which saved a lot of manpower and material resources.

The enhancement of the tax collection and management capacity of BRICs countries has greatly promoted the optimization of our business environment and the development of foreign trade, and has become a new engine to boost the BRICs' take-off.

During the ten years of the BRICs cooperation, the share of the five countries' total economy in the world economy increased from 12% to 23%, the proportion of total trade increased from 11% to 16%, the proportion of foreign investment rose from 7% to 12%, and the international status of BRICs increased continuously, which injected more "positive energy" to promote world economic growth and achieve common development of all countries.

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