国际税收课后习题答案.docx

1、国际税收课后习题答案Chapter1 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).International tax in a board sence covers not onl

2、y income but also turnover taxes,etc. about differences between China and USA on taxation system 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.2)The federal government,state government and local government of the USA have pretty

3、 rights to collect taxes,while the rights to collect taxes are mostly controlled in central government.3)The USA use comprehensive income tax system and deduct fees refers to different use itemized income tax system.4)In the respect of estate tax, real estate tax is the mainly object to be taxed . d

4、ifferences among Macau,China Continent and HongKong for the purpose of tax features according to table 11)The corporate income tax rates in China Continent is the highest in these three ,to 25%.The tax base of China Continent Is worldwide while the others are territorial.2)In China Continent we have

5、 taxes for interest,royalties,technical fees,management fees (all of them are 10% for non-resident,20%for resident ),while the others dont have them.3)China Continent have value-added tax ,while the others dont have them. differences among UK,China Continent and Spain for the purpose of Corporate in

6、come tax according to table 21)Spain has the highest corporate tax rate to %.2)UK doesnt tax for many income which China Continent or Spain will tax such as Capital gains ,branch profits,dividends, technical fees and management fees. differences among China Continent and foreign jurisdictions for th

7、e purpose of withholding taxes according to table 31)For branch profits, interest ,technical fees and management fees most jurisdictions dont collect tax except Ireland(collect for interest) and China Continent.2)Except Switzerland federal tax rates of dividends and interest are 35% and higher than

8、China Continent ,other jurisdictions withholding tax rates are mostly lower or equal to China Continent.Chapter2International Income Taxation does a country generally design its income taxation system?(book page50)1)territorial(领土模式）：2)Residency(属人模式）:tax on the worldwide income of residents, and im

9、pose tax on the income of nonresidents from certain sources within the country. USA.3)Exclusion(例外）:specific inclusion or exclusion of certain amounts,classes,or items of income in/from the base of taxation.4)Hybrid(混合模式):some governments have chosen for all or only certain classes of taxpayers, to

10、adopt systems that are a combination of territorial, residency, or exclusionary. is it important to make clear source of income?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. explana

11、tion:Thin Capitalization;Foreign tax Credit;Withholding tax; International tax treaty; Deferral system; International transfer pricing 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 muc

12、h deduction before this way,they transfer profits from high tax burden countries to low tax burden countries or jurisdictions.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

13、may be able to take a credit for those taxes.Taken as a credit, foreign income taxes reduce your own country tax liability.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

14、 reduced by the tax withheld.International tax treaty:International tax treaty is a treaty a country (or jurisdiction) signed with other countries (or jurisdiction) for affairs about taxation.Deferral system：Deferral system is a tax incentive (激励措施)to encourage domestic tax residence to make investm

15、ent broad.But it may cause international tax avoidance.(缺点：可能造成国际避税)International transfer pricing:International transfer pricing is a very important way for multinational company to avoid international tax.Transfer pricing refers to a kind of non-market pricing action taken by related corporations

16、to shift profits form high tax rate countries or jurisdictions to low tax rete regions.Chapter3Tax Residence is the main difference between a tax resident and a non-tax resident for tax liability purpose?In general, a tax resident bears infinite tax liability ,should pay tax for all of its income.A

17、non-tax resident bears limited tax liability, should pay tax for income sourced from the country. you name some tests in determining whether a person is a resident?for corporation:place-of-incorporation test,place-of-management test,residence of the shareholders testfor individiual:a fact-and-circum

18、stances test ;abode test; number of day test(in China:15year temporary resident,5year - long-term resident) an example to prove how different countries apply differing tests to judge a persons residence?For example ,China for individual:domicile test,number of days(a full year);for corporation:place

19、-of-incorporation test or place-of-management testireland for individual:number of days test(183 days),domicile testfor corporation:place-of-incorporation test or place-of-management test explanation:Tax residence;dual resident;domicile test;Tax residence:If an individual or a corporation is a tax r

20、esidence ,it bears infinite tax liabilitis to its own is, in common law jurisdictions.dual resident:dual resident means an individual or a corporation is resident taxpayer in two countries at the same often occurs when two use different standard for tax residence.domicile test:If an individual or a

21、corporation has its domicile in a country ,it is the countrys tax is a common tax jurisdiciton.Chapter4Income Source Jurisdiction and Rules is source jurisdiction?Source jurisdiction is one important form of income tax is the most important tax jurisdiction.(收入来源地管辖权是一种重要的，并且是最重要的税收管辖权)All country a

22、nd jurisdiction adopt source jurisdiction(所有的国家和地区都使用来源地管辖权)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) to determine the source of employment and

23、personal services income?If the income derived from personal services performed by an employee, it is source of employment.If the income is performed by an independent contractor or a professional ,it is source of personal service income. to determine the source location of business Income?What is P

24、E?If the income is attributable to a PE(permanent establishment) in the country(ues rule 归属原则 rule引力规则), it is the countrys source income.PE: permanent establishment，based on substance or people.(场所：辅助性、准备性不算；人：必须是非独立代理人，经常为公司签订合同的等) to determine the source of investment income?Dividend and interest

25、 the income is derived from ownership of equity ,it is the source of investment income. about US source rules? are Chinas 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

26、 of defult tax rate for an RE ,prior to any special tax treatment, is 25 percent.An NRE(nonresident enterprise) that has any Operational Establishment in China is required to pay enterprise income tax only on its income sourced from tax rate is 10 percent.Chapter 5International Double Taxation and R

27、elief 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. is the main difference between legal International double taxation and economic International double taxation?Legal International double taxation is fo

28、r the same taxpayers ,who are often branch companys, using direct credits.Economic International double taxation is for different taxpayers,who are often subside companys,using indirect credits. an example to prove International double taxation arising from the same tax jurisdiction and relief. appr

29、oaches are used to solve International double taxation resulting from residence-source conflicts?Unilateral,bilateral and multilateral approaches.Deduction method,exemption method,credit method and so on. is the main difference between deduction method and credit method?Deduction:reduce all kinds of

30、 fees from taxable income.Credit:reduce credit from tax due. specific relief methods does international community agree to?The OECD and UN models only authorize the credit and exemption method,not the deduction method.:fullexemption;partialexemption;limitation on credit;full exemption:only levy tax

31、on income from resident companys own country.partial exemption:give resident company a part of tax exemption for overseas income.limitation on credit:the tax rate of resident companys own country multiply by the income in the country.If the taxpayer paied a amount of tax less than the limitation,it

32、should pay tax in arrears.Chapter 6International Tax Avoidance and Tax Haven 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.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) many types of tax havens are ther