BEIJING, May 21 (Xinhua) -- The Conference on Tax Cooperation within the framework of the Belt and Road Initiative opened on May 14 in Astana, capital of Kazakhstan, with the theme of "Belt and Road co-construction; tax coordination and cooperation".
Building a long-acting tax cooperation mechanism for countries and regions along the Belt and Road is a practical move to perfect international tax administration, continue to optimize business environment and promote the development of the world economy, said Wang Jun, Director of China’s State Administration of Taxation (SAT) at the opening ceremony of the conference.
--Integrating tax cooperation through deep participation
International economic cooperation needs favorable business environment, and taxation should play its positive role in creating favorable business environment, said Wang, adding that this requires us to conduct tax consultation by further deepening tax cooperation, effectively settle tax disputes and continue to optimize tax services, thereby constantly enhancing the standardability, continuity and transparency of tax policies and tax administration and service measures under the increasingly close economic exchanges.
The past five years since the Belt and Road Initiative was put forward have seen China's deep participation in global tax administration. Chinese tax departments have been committed to deepening their tax cooperation with Belt and Road countries and regions, and endeavored to eliminate tax barriers, reduce tax burden and unblock economic trade, in a joint effort to improve the capacity for tax administration, and make relevant countries better share the results of Belt and Road construction.
Chinese tax departments have upheld the concept of opening-up and development, provided "Chinese schemes" for global tax administration, contributed "Chinese wisdom" and shared "Chinese experience". As of April 2018, Chinese tax departments had established cooperative relations with 25 international organizations and regional tax organizations, established a mechanism of bilateral tax cooperation with 117 countries and regions, signed tax treaties with 54 countries and regions along the Belt and Road, and published 75 national investment tax guides.
"From 2015 to 2017, Chinese tax departments employed the negotiation mechanism under tax treaties to conduct 211 bilateral tax negotiations, eliminating repetitive taxes of 12.878 billion yuan for enterprises involved in 'going out' and 'bringing in'," said Liao Tizhong, Director of the International Tax Department of SAT.
--Escorting enterprise globalization
In the past five years, China has entered into Belt and Road cooperation agreements with more than 80 countries and international organizations, and more than 100 countries and international organizations have taken active part in Belt and Road construction.
Belt and Road is a road of economic cooperation and unblocked trade. Aiming at the tax risks faced by enterprises during their globalization, "tax departments have taken a series of measures to quickly familiarize them with the basic tax information of overseas investment destinations," said Liao.
China's northwest Shaanxi province is at the starting point of the ancient silk road. Shaanxi's tax departments have tailored foreign-related taxation solutions for enterprises and provided order-based on-demand services. After Xi'an Aiju Grain and Oil Industry Group (Aiju) made a service request, the local tax department promptly arranged international tax experts to tailor the Kazakhstan tax guide for the enterprise. "The tax department's professional and considerate service made us warm and boosted our confidence in 'going out'," said Jia Heyi, General Manager of Aiju.
Chinese tax departments have made persistent efforts to provide targeted services for Belt and Road enterprises. Zhejiang Province's tax departments have established China's first international tax service outlet, and provide "one-stop" consultation services for Belt and Road enterprises in association with the exit & entry department, the social security department and other departments.
"Both SAT and tax authorities at all levels have provided maximum support for enterprise globalization in such aspects as treaty negotiation and signing, policy making and tax service," said Jiang Ying, deputy CEO of Deloitte China.
-- Growing with enterprises
Supported by Chinese tax departments, a growing number of enterprises have grown and transformed.
Since 2014, UnionPay International has established 25 branches abroad. The tax department in Shanghai’s Pudong New Area conducted a field survey of the company to help it understand international tax treaties and solve problems. With the help of the tax department, the enterprise's overseas tax risk was controlled effectively and the cost of its overseas branches was deducted by 649 million yuan in accordance with law. Now UnionPay's network is extending rapidly by 3 million merchants per year, and its operations have covered more than 50 countries and regions along the Belt and Road.
The ever-improved tax environment has boosted the strength and confidence of enterprises during "going out" and "bringing in", and the growth of enterprises has enhanced the expectation of two-way investment cooperation.
Countries related with the Belt and Road have accumulated a lot of valuable and sharable practical experience in tax policies and tax collection and administration," said an attendee, believing that tax cooperation will be strengthened with the deepening of economic trade.
(Edited by Yang Yifan, yangyifan@xinhua.org)
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