国际税收课后习题答案.doc

Chapter1
1、what is International Tax?What does it mainly address(探讨)?
International Tax is a science focusing on a serious tax issues resulting from different and conflicting tax rules made by particular countries ,jurisdictions and resolutions(决议)、謊峤飢轟铣鳃从。
International tax in a board sence covers not only income but also turnover taxes,etc、蒇卻轻宁晝狭贓。
2、Talk about differences between China and USA on taxation system 獭胫锡线鐵黌驻。
1)The USA is a country with income taxes as a major tax while in China we have turn over taxes as our important taxes、詁锒傩誦鸹鑼锯。
2)The federal government,state government and local government of the USA have pretty rights to collect taxes,while the rights to collect taxes are mostly controlled in central government、烫炽楨劲榮溃蕩。
3)The USA use comprehensive income tax system and deduct fees refers to different situation、China use itemized income tax system、綰撵试红黲贯溫。
4)In the respect of estate tax, real estate tax is the mainly object to be taxed 、饵缑凱缴颮轅嗎。
3、On differences among Macau,China Continent and HongKong for the purpose of tax features according to table 1谂籠骟窝阖樣標。
1)The corporate income tax rates in China Continent is the highest in these three ,to 25%、鸵殴貽欖蝈牽妈。
The tax base of China Continent Is worldwide while the others are territorial、褻载鄭詔炖礬楼。
2)In China Continent we have taxes for interest,royalties,technical fees,management fees (all of them are 10% for non-resident,20%for resident ),while the others don’t have them、颯养虛貨鄲触楼。
3)China Continent have value-added tax ,while the others don’t have them、贄葦擴賀钋嶺釃。
4、On differences among UK,China Continent and Spain for the purpose of Corporate income tax according to table 2鋁种蘭杨鷦銀詠。
1)Spain has the highest corporate tax rate to 32、5%、铮梟够豎驊蘞冁。
2)UK doesn’t tax for many income which China Continent or Spain will tax such as Capital gains ,branch profits,dividends, technical fees and management fees、廡嫵哒纥礪噓种。
5、On differences among China Continent and foreign jurisdictions for the purpose of withholding taxes according to table 3缵閼躥堑漸觶颼。
1)For branch profits, interest ,technical fees and management fees most jurisdictions don’t collect tax except Ireland(collect for interest) and China Continent、构贗独淚俁铰鹨。
2)Except Switzerland federal tax rates of dividends and interest are 35% and higher than China Continent ,other jurisdictions’ withholding tax rates are mostly lower or equal to China Continent、馐髋贴鍍謎断靜。
Chapter2
International Income Taxation
1、How does a country generally design its income taxation system?隽厨奧杩負纊崭。
(book page50)
1)territorial(领土模式）：
tax only income earned within their borders、eg、HongKong、浆撳献俨钍锣罰。
2)Residency(属人模式）:
tax on the worldwide income of residents, and impose tax on the income of nonresidents from certain sources within the country、 eg、the USA、铡銚劇馔梦镬皚。
3)Exclusion(例外）:
specific inclusion or exclusion of certain amounts,classes,or items of income in/from the base of taxation、喷奮鋌玨叁掄縱。
4)Hybrid(混合模式):
some governments have chosen for all or only certain classes of taxpayers, to adopt systems that are a combination of territorial, residency, or exclusionary、賬聖怿毁莅麼義。
2、Why is it important to make clear source of income?區纸椏镙釹颜窶。
To make clear source of income is important because it decidides that whether a individual or corporation should pay tax in a country and what credits can it enjoy、饒優騖蘚铠憲阗。
3、Term explanation:Thin Capitalization;Foreign tax Credit;Withholding tax; International tax treaty; Deferral system; International transfer pricing 箧浹躓岘涨栀斷。
Thin Capitalization:
Thin capitalization is a method that taxpayers borrow too much money from oversea related party and pay much interest, so that they can enjoy much deduction before tax、By this way,they transfer profits from high tax burden countries to low tax burden countries or jurisdictions、兑慟纪缚轂劊渙。
Foreign tax Credit（外国税收抵免）：
If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to resident country tax on the same income, you may be able to take a credit for those taxes、烟备厨爱帱缝隨。
Taken as a credit, foreign income taxes reduce your own country tax liability、誦缜轴賓蠟這謊。
Withholding tax:
Withholding tax is tax withheld by the country when a corporation making a payment to its resident country , in which the full amount owed to that corporation is reduced by the tax withheld、橱擋戇邐纾謬怿。
International tax treaty:
International tax treaty is a treaty a country (or jurisdiction) signed with other countries (or jurisdiction) for affairs about taxation、倉話场鉍熾沣潍。
Deferral system：
Deferral system is a tax incentive (激励措施)to encourage domestic tax residence to make investment broad、黷鞯侧鼹彈軫標。
But it may cause international tax avoidance、(缺点：可能造成国际避税)賚讧鏘濒斓叽档。
International transfer pricing:
International transfer pricing is a very important way for multinational company to avoid international tax、戇蟬茲燉瞇嗇鹗。
Transfer pricing refers to a kind of non-market pricing action taken by related corporations to shift profits form high tax rate countries or jurisdictions to low tax rete regions、蛱恽无諞轉鳄莖。
Chapter3
Tax Residence
1、What is the main difference between a tax resident and a non-tax resident for tax liability purpose?攪购钙納鐿妝狞。
In general, a tax resident bears infinite tax liability ,should pay tax for all of its income、装万阵訂錦谴鰍。
A non-tax resident bears limited tax liability, should pay tax for income sourced from the country、馈酈疖慣巯輒鈮。
2、Can you name some tests in determining whether a person is a resident?籁镄閶灤渔罂荫。
for corporation:
place-of-incorporation test,place-of-management test,residence of the shareholders test饒詛钴鹬寧鲋匯。
for individiual:
a fact-and-circumstances test ;abode test; number of day test(in China:1~5year – temporary resident,>5year - long-term resident)寻镕厲崃嶼孪愨。
3、Take an example to prove how different countries apply differing tests to judge a person's residence?鮒钫蠱缕網唛膠。
For example ,
China for individual:domicile test,number of days(a full year);画預鐳賂椤銣鉤。
for corporation:place-of-incorporation test or place-of-management test換庞阅園鯽嬪贤。
ireland for individual:number of days test(183 days),domicile test馬恽铌缪鈑缱鸶。
for corporation:place-of-incorporation test or place-of-management test据齷芈鱿毿浹咏。
4、Term explanation:Tax residence;dual resident;domicile test;輛壽钿遲霁绍缧。
Tax residence:
If an individual or a corporation is a tax residence ,it bears infinite tax liabilitis to its own country、Domicile is, in common law jurisdictions、鲻讕优赌鲻尴緞。
dual resident:
dual resident means an individual or a corporation is resident taxpayer in two countries at the same time、It often occurs when two use different standard for tax residence、贪叁龍檳缕诟諸。
domicile test:
If an individual or a corporation has its domicile in a country ,it is the country's tax residence、It is a common tax jurisdiciton、負時緩掄鲡鳩阚。
Chapter4
Income Source Jurisdiction and Rules
1、What is source jurisdiction?
Source jurisdiction is one important form of income tax jurisdiction、It is the most important tax jurisdiction、(收入来源地管辖权就是一种重要得，并且就是最重要得税收管辖权)瀅讥闵絷鸞挠荣。
All country and jurisdiction adopt source jurisdiction(所有得国家与地区都使用来源地管辖权)录燼漁擰纸戋鸢。
So called source jurisdiction refers to that as long as an tiem of income is sourced within the territory, the government of the territory has rights to lavy income tax on it 、(一笔所得只要来源于本国，就可以对其征税)譏鹃駟鐓纠鲫夹。
2、How to determine the source of employment and personal services income?铴鑼护讪趙殓慶。
If the income derived from personal services performed by an employee, it is source of employment、铎紛護鶯疯笃碛。
If the income is performed by an independent contractor or a professional ,it is source of personal service income、饪檉颉應崢树冈。
3、How to determine the source location of business Income?What is PE?頃诒艺历璽曠崗。
If the income is attributable to a PE(permanent establishment) in the country(ues 1、attribution rule 归属原则2、attraction rule引力规则), it is the country’s source income、剀补瓏腽憮鱖谋。
PE: permanent establishment，based on substance or people、侨諛锡冈閬呜櫪。
(场所：辅助性、准备性不算；人：必须就是非独立代理人，经常为公司签订合同得等)
4、How to determine the source of investment income?飓磽囁轲鱟胶賂。
Dividend and interest income、If the income is derived from ownership of equity ,it is the source of investment income、党锚媽鸨硯蘆颌。
5、How about US source rules?
6、What are China's source rules?
An RE(resident enterprise)must pay enterprise income tax to the Chinese government on all its income,regardless of whether such income is generated within or outside of China、The defult tax rate for an RE ,prior to any special tax treatment, is 25 percent、睪纪锣苧缲鏨澜。
An NRE(nonresident enterprise) that has any Operational Establishment in China is required to pay enterprise income tax only on its income sourced from China、The tax rate is 10 percent、齡谴桠徑齜钵頓。
Chapter 5
International Double Taxation and Relief
1、What is International double taxation?
International double taxation is that the same item of asset is taxed twice or more than twice in a tax year、馒锴怂恆葷淨黄。
2、What is the main difference between legal International double taxation and economic International double taxation?伦责蛰讹誼钽浅。
Legal International double taxation is for the same taxpayers ,who are often branch companys, using direct credits、戧摶惭镐赝塢亚。
Economic International double taxation is for different taxpayers,who are often subside companys,using indirect credits、咼乔嘮鯤苈谐渑。
3、Take an example to prove International double taxation arising from the same tax jurisdiction and relief、篱諢輛鋝擱櫳辍。
4、What approaches are used to solve International double taxation resulting from residence-source conflicts?诎钽娆铙硗鄒賴。
Unilateral,bilateral and multilateral approaches、
Deduction method,exemption method,credit method and so on、鶘鮪诓帐碱傘輻。
5、What is the main difference between deduction method and credit method?鹼伞縣没裊择龌。
Deduction:reduce all kinds of fees from taxable income、谲说郐僅飫戶瘋。
Credit:reduce credit from tax due、
6、Which specific relief methods does international community agree to?坚鐳赜擴頷鋨谈。
The OECD and UN models only authorize the credit and exemption method,not the deduction method、鏇灩窥鄧燒痒讦。
7、Termexplanation:fullexemption;partialexemption;limitation on credit;嶇鹦鍋猻鋸廂铯。
full exemption:
only levy tax on income from resident company's own country、鰈鯤囀貽釙药邹。
partial exemption:
give resident company a part of tax exemption for overseas income、黌廣厣馋謄哕餘。
limitation on credit:
the tax rate of resident company's own country multiply by the income in the country、氢谳摑镙茏灿鮑。
If the taxpayer paied a amount of tax less than the limitation,it should pay tax in arrears、勞祿谛闫審轴瀠。
Chapter 6
International Tax Avoidance and Tax Haven
1、What is tax haven?
Tax haven is a country or jurisdiction which has low tax rate or no tax so that people choose to live or register company there to avoid the high tax burden in their own country or jurisdiction、頦徠蕩锓辙苹钉。
Another definition:
A tax haven is a country or territory where taxes are lavied at a low rate or not at all、(in the book)闪忆鏵愷钹橹栅。
2、How many types of tax havens are there in the world?鹌纡躚谄誣賤虬。
There、
1）Nil-Tax Havens(零税率):
do not have any of the three main direct taxes:No income tax or corporation tax;No capital gains tax,and No inheritance tax、鯀缯寶蝈显缦荊。
2）Foreign Source Exempt Havens(外国来源豁免)：
They only tax you on lacally derived income、
3）Low-Tax Havens(低税率):
Have special concessions or double tax treaties、
3、Name some non-tax features of a tax haven?

Generally,a tax haven have these features:
1)Small territory
2)Privacy
3)Ease of residence
4)Political stability
5)Political stability
6)Relaible communications
7)Good life factors、
4、How does an international taxpayer make use of a tax haven?頇疠哝憶冁瀟蟄。
(in book P104)methodology
1)Change personal residency、(改变居民身份)Relocate themselves in low-tax jurisdiction、奖鬮专满揽體谫。
2)Asset holding、(资产持有)Utilize a trust or a company which will be formed in tax haven、钝馮僑马贄岡拢。
3)Trading and other business activity、（生产经营）Set up many businesses which do not require a specific geographical location or extensive labor in tax havens to minimimze tax exposure、镉燈衮鋮尴轤羈。
4)Financial intermediaries、（通过财务金融中介公司）Use funds,banking,life insurance and pensions、Deposit with the intermediary in the low-tax jurisdiction、钼敵远顼殚絞藎。
5、Does China have anti-tax-haven rules?
Yes、In CFC rules、
6、What are the advantages of being a tax haven?
Being a tax haven ,a jurisdiction can
1) have divisions of multinational locating there and employ some of the local population;渖闃喽泾滄銮藎。
2)transfer needed skills to the local population;
3)go a long way to attracting foreign companies、
7、What are the reasons for some jurisdictions desiring to be tax havens?给赖筝變躏赐贡。
The same as question6、
Chapter 7
International Transfer Pricing and Rules
1、What is International transfer pricing?
Transfer pricing refers to a kind of non-market pricing action taken by related corporations to shift profits form high tax rate countries or jurisdictions to low tax rete regions、鲎郧跄蝈创鳕馴。
The main purposes are reduce tax burden and a series of non-tax purposes like 1)occupy market 2)change the subsidiary’s image in order to gain other interest 3)avoid currency control 4)minimize the expose to import duty 5)earn excess profit …纳齜较維鯇豎釃。
2、Take an example to prove that International transfer pricing can be used to avoid international tax ?鎰養嵝跞渔誄呒。
For example,A has a product can be sold at 1000 dollars, but A sold it to B at 100 dollars、Then B will sell it at 1000, 900 profit was shift to B’s countries or jurisdictions,andB was setup in tax haven,the group don’t have to pay much tax、館减贖练訪训暈。
3、Whatare the main contents of International transfer pricing rules?舉袄楊溃圣蓟巩。
International transfer pricing rules are a series of tax manage rules made by countries or governments in order to prevent corporations particularly multinational corporations utilize International transfer pricing to avoid tax ,which cause government’s tax run off、閩邺荚谘骣讞瑋。
4、Termexplanation:comparable uncontrolled price;costplus;resaleprice;transactional net margin method;profit split method;comparabilityanalysis 縹繅綾顛诩總谴。
Chapter8
Controlled Foreign Corporation and Rules
1、How does a multinational firm use a CFC to avoid tax?茎峄钾閏騅尔裆。
In most cases,Chinese firms tend to not distribute or just distribute a little profit from CFC to its parent firm、While, foreign firms usually let the profit stay in the CFC、妝铋谍预儀銀属。
2、What is CFC
CFC refers to firms controlled by resident firms and theyare often set in low tax rate or no tax reigions、瞇結薌县漁蝾颶。
3、What is the relationship between deferral system(延迟缴纳) and CFC rules?鎬鈥賕錈炽兽鱼。
The law of many countries does not tax a shareholder of a corporation on the corporation’s income until the income is distributed as a dividend、鍰闔騎参匦尋襝。
This dividend could be avoided indefinitely by loaning the earnings to the shareholder without actually declaring a dividend、黉溆僅阄蕷穩飆。
The CFC rules were intended to cause current taxation to the shareholder where income was of a sort that could