国际税收课后习题答案

Chapter11.whatisInternationalTax?Whatdoesitmainlyaddress(探讨)?InternationalTaxisasciencefocusingonaserioustaxissuesresultingfromdifferentandconflictingtaxrulesmadebyparticularcountries,jurisdictionsandresolutions(决议).Internationaltaxinaboardsencecoversnotonlyincomebutalsoturnovertaxes,etc.2.TalkaboutdifferencesbetweenChinaandUSAontaxationsystem1)TheUSAisacountrywithincometaxesasamajortaxwhileinChinawehaveturnovertaxesasourimportanttaxes.2)Thefederalgovernment,stategovernmentandlocalgovernmentoftheUSAhaveprettyrightstocollecttaxes,whiletherightstocollecttaxesaremostlycontrolledincentralgovernment.3)TheUSAusecomprehensiveincometaxsystemanddeductfeesreferstodifferentsituation.Chinauseitemizedincometaxsystem.4)Intherespectofestatetax,realestatetaxisthemainlyobjecttobetaxed.3.OndifferencesamongMacau,ChinaContinentandHongKongforthepurposeoftaxfeaturesaccordingtotable11)ThecorporateincometaxratesinChinaContinentisthehighestinthesethree,to25%.ThetaxbaseofChinaContinentIsworldwidewhiletheothersareterritorial.2)InChinaContinentwehavetaxesforinterest,royalties,technicalfees,managementfees(allofthemare10%fornon-resident,20%forresident),whiletheothersdon’thavethem.3)ChinaContinenthavevalue-addedtax,whiletheothersdon’thavethem.4.OndifferencesamongUK,ChinaContinentandSpainforthepurposeofCorporateincometaxaccordingtotable21)Spainhasthehighestcorporatetaxrateto32.5%.2)UKdoesn’ttaxformanyincomewhichChinaContinentorSpainwilltaxsuchasCapitalgains,branchprofits,dividends,technicalfeesandmanagementfees.5.OndifferencesamongChinaContinentandforeignjurisdictionsforthepurposeofwithholdingtaxesaccordingtotable31)Forbranchprofits,interest,technicalfeesandmanagementfeesmostjurisdictionsdon’tcollecttaxexceptIreland(collectforinterest)andChinaContinent.2)ExceptSwitzerlandfederaltaxratesofdividendsandinterestare35%andhigherthanChinaContinent,otherjurisdictions’withholdingtaxratesaremostlylowerorequaltoChinaContinent.

Chapter2InternationalIncomeTaxation1.Howdoesacountrygenerallydesignitsincometaxationsystem?(bookpage50)1)territorial(领土模式）：taxonlyincomeearnedwithintheirborders.eg.HongKong.2)Residency(属人模式）:taxontheworldwideincomeofresidents,andimposetaxontheincomeofnonresidentsfromcertainsourceswithinthecountry.eg.theUSA.3)Exclusion(例外）:specificinclusionorexclusionofcertainamounts,classes,oritemsofincomein/fromthebaseoftaxation.4)Hybrid(混合模式):somegovernmentshavechosenforalloronlycertainclassesoftaxpayers,toadoptsystemsthatareacombinationofterritorial,residency,orexclusionary.2.Whyisitimportanttomakeclearsourceofincome?Tomakeclearsourceofincomeisimportantbecauseitdecididesthatwhetheraindividualorcorporationshouldpaytaxinacountryandwhatcreditscanitenjoy.3.Termexplanation:ThinCapitalization;ForeigntaxCredit;Withholdingtax;Internationaltaxtreaty;Deferralsystem;InternationaltransferpricingThinCapitalization:Thincapitalizationisamethodthattaxpayersborrowtoomuchmoneyfromoversearelatedpartyandpaymuchinterest,sothattheycanenjoymuchdeductionbeforetax.Bythisway,theytransferprofitsfromhightaxburdencountriestolowtaxburdencountriesorjurisdictions.ForeigntaxCredit（外国税收抵免）：Ifyoupaidoraccruedforeigntaxestoaforeigncountryonforeignsourceincomeandaresubjecttoresidentcountrytaxonthesameincome,youmaybeabletotakeacreditforthosetaxes.Takenasacredit,foreignincometaxesreduceyourowncountrytaxliability.Withholdingtax:Withholdingtaxistaxwithheldbythecountrywhenacorporationmakingapaymenttoitsresidentcountry,inwhichthefullamountowedtothatcorporationisreducedbythetaxwithheld.Internationaltaxtreaty:Internationaltaxtreatyisatreatyacountry(orjurisdiction)signedwithothercountries(orjurisdiction)foraffairsabouttaxation.Deferralsystem：Deferralsystemisataxincentive(激励措施)toencouragedomestictaxresidencetomakeChapter5InternationalDoubleTaxationandRelief1.WhatisInternationaldoubletaxation?Internationaldoubletaxationisthatthesameitemofassetistaxedtwiceormorethantwiceinataxyear.2.WhatisthemaindifferencebetweenlegalInternationaldoubletaxationandeconomicInternationaldoubletaxation?LegalInternationaldoubletaxationisforthesametaxpayers,whoareoftenbranchcompanys,usingdirectcredits.EconomicInternationaldoubletaxationisfordifferenttaxpayers,whoareoftensubsidecompanys,usingindirectcredits.3.TakeanexampletoproveInternationaldoubletaxationarisingfromthesametaxjurisdictionandrelief.4.WhatapproachesareusedtosolveInternationaldoubletaxationresultingfromresidence-sourceconflicts?Unilateral,bilateralandmultilateralapproaches.Deductionmethod,exemptionmethod,creditmethodandsoon.5.Whatisthemaindifferencebetweendeductionmethodandcreditmethod?Deduction:reduceallkindsoffeesfromtaxableincome.Credit:reducecreditfromtaxdue.6.Whichspecificreliefmethodsdoesinternationalcommunityagreeto?TheOECDandUNmodelsonlyauthorizethecreditandexemptionmethod,notthedeductionmethod.7.Termexplanation:fullexemption;partialexemption;limitationoncredit;fullexemption:onlylevytaxonincomefromresidentcompany'sowncountry.partialexemption:giveresidentcompanyapartoftaxexemptionforoverseasincome.limitationoncredit:thetaxrateofresidentcompany'sowncountrymultiplybytheincomeinthecountry.Ifthetaxpayerpaiedaamountoftaxlessthanthelimitation,itshouldpaytaxinarrears.

Chapter6InternationalTaxAvoidanceandTaxHaven1.Whatistaxhaven?Taxhavenisacountryorjurisdictionwhichhaslowtaxrateornotaxsothatpeoplechoosetoliveorregistercompanytheretoavoidthehightaxburdenintheirowncountryorjurisdiction.Anotherdefinition:Ataxhavenisacountryorterritorywheretaxesarelaviedatalowrateornotatall.(inthebook)2.Howmanytypesoftaxhavensarethereintheworld?There.1）Nil-TaxHavens(零税率):donothaveanyofthethreemaindirecttaxes:Noincometaxorcorporationtax;Nocapitalgainstax,andNoinheritancetax.2）ForeignSourceExemptHavens(外国来源豁免)：Theyonlytaxyouonlacallyderivedincome.3）Low-TaxHavens(低税率):Havespecialconcessionsordoubletaxtreaties.3.Namesomenon-taxfeaturesofataxhaven?Generally,ataxhavenhavethesefeatures:1)Smallterritory2)Privacy3)Easeofresidence4)Politicalstability5)Politicalstability6)Relaiblecommunications7)Goodlifefactors.4.Howdoesaninternationaltaxpayermakeuseofataxhaven?(inbookP104)methodology1)Changepersonalresidency.(改变居民身份)Relocatethemselvesinlow-taxjurisdiction.2)Assetholding.(资产持有)Utilizeatrustoracompanywhichwillbeformedintaxhaven.3)Tradingandotherbusinessactivity.（生产经营）Setupmanybusinesseswhichdonotrequireaspecificgeographicallocationorextensivelaborintaxhavenstominimimzetaxexposure.4)Financialintermediaries.（通过财务金融中介公司）Usefunds,banking,lifeinsuranceandpensions.Depositwiththeintermediaryinthelow-taxjurisdiction.5.DoesChinahaveanti-tax-havenrules?Yes.InCFCrules.6.Whataretheadvantagesofbeingataxhaven?Beingataxhaven,ajurisdictioncan1)havedivisionsofmultinationallocatingthereandemploysomeofthelocalpopulation;2)transferneededskillstothelocalpopulation;3)goalongwaytoattractingforeigncompanies.7.Whatarethereasonsforsomejurisdictionsdesiringtobetaxhavens?Thesameasquestion6.

Chapter7InternationalTransferPricingandRules1.WhatisInternationaltransferpricing?Transferpricingreferstoakindofnon-marketpricingactiontakenbyrelatedcorporationstoshiftprofitsformhightaxratecountriesorjurisdictionstolowtaxreteregions.Themainpurposesarereducetaxburdenandaseriesofnon-taxpurposeslike1)occupymarket2)changethesubsidiary’simageinordertogainotherinterest3)avoidcurrencycontrol4)minimizetheexposetoimportduty5)earnexcessprofit…2.TakeanexampletoprovethatInternationaltransferpricingcanbeusedtoavoidinternationaltax?Forexample,Ahasaproductcanbesoldat1000dollars,butAsoldittoBat100dollars.ThenBwillsellitat1000,900profitwasshifttoB’scountriesorjurisdictions,andBwassetupintaxhaven,thegroupdon’thavetopaymuchtax.3.WhatarethemaincontentsofInternationaltransferpricingrules?InternationaltransferpricingrulesareaseriesoftaxmanagerulesmadebycountriesorgovernmentsinordertopreventcorporationsparticularlymultinationalcorporationsutilizeInternationaltransferpricingtoavoidtax,whichcausegovernment’staxrunoff.4.Termexplanation:comparableuncontrolledprice;costplus;resaleprice;transactionalnetmarginmethod;profitsplitmethod;comparabilityanalysis

Chapter8ControlledForeignCorporationandRules1.HowdoesamultinationalfirmuseaCFCtoavoidtax?Inmostcases,ChinesefirmstendtonotdistributeorjustdistributealittleprofitfromCFCtoitsparentfirm.While,foreignfirmsusuallylettheprofitstayintheCFC.2.WhatisCFC?CFCreferstofirmscontrolledbyresidentfirmsandtheyareoftensetinlowtaxrateornotaxreigions.3.Whatistherelationshipbetweendeferralsystem(延迟缴纳)andCFCrules?Thelawofmanycountriesdoesnottaxashareholderofacorporationonthecorporation’sincomeuntiltheincomeisdistributedasadividend.Thisdividendcouldbeavoidedindefinitelybyloaningtheearningstotheshareholderwithoutactuallydeclaringadividend.TheCFCruleswereintendedtocausecurrenttaxationtotheshareholderwhereincomewasofasortthatcouldbeartificiallyshiftedorwasmadeavailabletotheshareholder.Atthesametime,suchruleweredesignedtointerferewithnormalcommercialpractices.4.Whatarethemaincontentsofacountry’sCFCrules?Themaincontentsofacountry’sCFCrulesaretopreventresidents(includingindividualsandfirms)usingcontrolledforeigncorporationtoavoidtaxburden.5.WhenwereChina’sCFCrulesestablished?Year2009.6.CanyounameanydifferencesbetweenChinaandforeignjurisdictionsforpurposesofCFCrules????7.MustaforeigncorporationwhichisestablishedinataxhavenandcontrolledbyourresidentsbeaCFCforourtaxpurpose?Why?No.Iftheforeigncorporationis1)asmallcorporation(thetotalprofitayearislessthan5millions);2)themainincomewasgetfrompositiveoperatingactivities,itwon’tbeaCFCforourtaxpurpose.

Chapter9ThinCapitalizationandRules1.Whatisthincapitalization?Thincapitalizationisamethodthattaxpayersborrowtoomuchmoneyfromoversearelatedpartyandpaymuchinterest,sothattheycanenjoymuchdeductionbeforetax.Bythisway,theytransferprofitsfromhightaxburdencountriestolowtaxburdencountriesorjurisdictions.2.Giveanexampletoprovethatthincapitalizationcanbeusedtoavoidtax.暂无3.Whatarethemaincontentsofthincapitalizationrules?1)Therelationshipbetweenborrowerandlender.2)Thedeterminationofexcessiveinterest.3)Treatmentofexcessiveinterest:deemeddividendandwithholdingtaxislavied.4)???4.WhatarethemainfeaturesoftheUSAthincapitalizationrules?5.TalkaboutthincapitalizationrulesinChinaChinauseALP(arm’slenthprinciple)/fixedDebt-to-EquityRatio/Earningsstripping(收益剥离法)。

Chapter101.Whatisinternationaltaxtreaty?Whatcategoriesoftaxtreatyarethere?Internationaltaxtreatyisatreatyacountry(orjurisdiction)signedwithothercountries(orjurisdiction)foraffairsabouttaxation.(1)Taxtreatiescanbeclassifiedintosingletaxtreatyandcomprehensivetaxtreaty.Singletaxtreatyisforaspecifictaxandcomprehensivetaxtreatyisformanytaxes;(2)classifiedbytypeoftaxsuchasVATtreaty,incometaxtreaty,customsdutytreatyandsoon