Open Access Journal Article

Research on Global Tax Governance under the Background of Digital Economy

by Jingyi Yang a ,  Xiaoyang Guo a  and  Yang Shen a,*
a
School of Statistics, Institute of Quantitative Economics, Huaqiao University, Xiamen, China
*
Author to whom correspondence should be addressed.
REA  2024, 28; 3(1), 28; https://doi.org/10.58567/rea03010006
Received: 20 February 2024 / Accepted: 27 March 2024 / Published Online: 1 April 2024
View Full-Text
Download PDF

Abstract

Under the background of digital economy, global tax governance has become one of the important topics in today's world development and change. In recent years, new challenges, such as tax base erosion and profit transfer, and the imbalance of cross-border tax source division, have become prominent, forcing the reform of international tax rules and the reshaping of international tax order. Based on this, the article first deeply digs into the scale and cross-border characteristics of the spatial-temporal aggregation of the digital economy, and comprehensively evaluates its impact on the global tax governance pattern. After that, the article combs out the realistic picture and challenges of the current digital tax reform from the aspects of theoretical basis, basic principles and governance mechanism. Finally, based on China's basic national conditions, the article puts forward some institutional ideas and policy suggestions, with a view to improving China's participation, voice and influence in global tax governance, and also enabling governments, enterprises and residents of various countries to enjoy the fruits of world economic development fairly and promote the construction of Community of Shared Future for Mankind.

Keywords: Global tax governance; Digital economy; Tax base co-construction; Profit sharing; BEPS;
Copyright: © 2024 by Yang, Guo and Shen. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Funding

Natural Science Foundation of Fujian Province (2022J01320)

Share and Cite

ACS Style
Yang, J.; Guo, X.; Shen, Y. Research on Global Tax Governance under the Background of Digital Economy. Review of Economic Assessment, 2024, 3, 28. https://doi.org/10.58567/rea03010006
AMA Style
Yang J, Guo X, Shen Y. Research on Global Tax Governance under the Background of Digital Economy. Review of Economic Assessment; 2024, 3(1):28. https://doi.org/10.58567/rea03010006
Chicago/Turabian Style
Yang, Jingyi; Guo, Xiaoyang; Shen, Yang 2024. "Research on Global Tax Governance under the Background of Digital Economy" Review of Economic Assessment 3, no.1:28. https://doi.org/10.58567/rea03010006
APA style
Yang, J., Guo, X., & Shen, Y. (2024). Research on Global Tax Governance under the Background of Digital Economy. Review of Economic Assessment, 3(1), 28. https://doi.org/10.58567/rea03010006

Article Metrics

Article Access Statistics

References

  1. Amberger, H. J., & Kohlhase, S. (2023). International taxation and the organizational form of foreign direct investment. Journal of International Business Studies. 54(8), 1529-1561. http://doi.org/10.1057/S41267-023-00614-1
  2. Appiah-Kubi, S.N.K., Malec, K., Phiri, J., Maitah, M., Gebeltová, Z., Smutka, L., Blazek, V., Maitah, K., & Sirohi, J. (2021). Impact of Tax Incentives on Foreign Direct Investment: Evidence from Africa. Sustainability. 13, 8661. https://doi.org/10.3390/su13158661
  3. Cai, K. G. (2022). China’s Initiatives: A Bypassing Strategy for the Reform of Global Economic Governance. Chinese Political Science Review. 8(1), 1-17. https://doi.org/10.1007/S41111-022-00215-7
  4. Cantos, J. M. (2022). BEPS Project and International Tax Reform: The 2021 Agreements on Taxing Multinational Companies. Evaluation review. 46(6), 193841. https://doi.org/10.1177/0193841X221103338
  5. Chen, Z. F., Xiao, Y., & Jiang, K. Q. (2023). The impact of tax reform on firms' digitalization in China. Technological Forecasting & Social Change. 187. https://doi.org/10.1016/J.TECHFORE.2022.122196
  6. Cho, H. J. (2020). Sustainable Tax Behavior of MNEs: Effect of International Tax Law Reform. Sustainability. 12, 7738. https://doi.org/10.3390/su12187738
  7. Cui, H. (2020). Clear the fog: the response to the triple challenges of tax jurisdiction distribution rules under the digital economy. Journal of international economic law. 4, 87-101.
  8. Deng, L. P. (2020). A Study on China's International Taxation under the Great Change in the Past Hundred Years. Journal of International Taxation. 2, 3-9. https://doi.org/10.19376/j.cnki.cn10-1142/f.2020.02.001
  9. Ding, R., Cao, Y. Y., & Sun, Y. Q. (2022). The Effects of Mandatory CSR Disclosure on Tax Avoidance and Tax Incidence. Front. Psychol. 13. https://doi.org/10.3389/fpsyg.2022.905153
  10. Du, J. M., & Cao, M. X. (2021). Discussion on several basic issues of international tax governance reform-tax power, value creation, public-private exchange and tax base determination under digital economy. Journal of International Taxation. 1, 14-19. https://doi.org/10.19376/j.cnki.cn10-1142/f.2021.01.002
  11. Elschner, C., & Hardeck, L. (2021). Assessing the Influence of Different Interest Groups on International Tax Policy: Evidence from the BEPS Project. 39(1), 304-338. https://doi.org/10.1111/1911-3846.12722
  12. Fernández, N. B. (2021). The Selective Advantage Criterion in Tax Rulings: The Path Towards a More Coherent and Thorough Analysis of Selectivity. 12(3), 200-216. https://doi.org/10.1093/JECLAP/LPAB018
  13. Gao, Y., Cai, C., & Cai, Y. W. (2021). Regional Peer Effects of Corporate Tax Avoidance. Front. Psychol. 12. https://doi.org/10.3389/fpsyg.2021.744371
  14. Georges, C. (2023). Optimal income taxation with tax avoidance and endogenous labour supply. Canadian Journal of Economics/Revue canadienne d’économique. 56(3), 913-939. https://doi.org/10.1111/CAJE.12675
  15. Guan, Y. J., Zeng, Y., Zhang, H. Y., & Zheng, K. C. (2022). Research Trends and Prospects of Tax Reform and Optimization Under the Implementation of New Development Concepts. Academic Journal of Humanities & Social Sciences. 5(2). https://doi.org/10.25236/AJHSS.2022.050207
  16. Guo, Y., Zou, T. T., & Shan, Z. W. (2022). Taxation strategies for the governance of digital business model—An example of China. Front. Psychol. 13. https://doi.org/10.3389/fpsyg.2022.1013228
  17. Hao, N., & Ji, M. X. (2023). Development of Platform Economy and Urban–Rural Income Gap: Theoretical Deductions and Empirical Analyses. Sustainability. 15(9). https://doi.org/10.3390/SU15097684
  18. Hearson, M., & Prichard, W. (2018). China's challenge to international tax rules and the implications for global economic governance. International Affairs. 94(6), 1287-1307. https://doi.org/10.1093/ia/iiy189
  19. Jemiolo, S., & Farnsel, C. (2023). Complements, substitutes or neither? A review of the relation between corporate social responsibility and corporate tax avoidance. Journal of Accounting Literature. 45(3), 474-496. https://doi.org/10.1108/JAL-12-2021-0018
  20. Johannes, B., & John, D. W. (2023). Tax competition with two tax instruments — and tax base erosion. Journal of Economics. 225, 104965. https://doi.org/10.1016/j.jpubeco.2023.104965
  21. Keeling, E. (2022). Wide of the Mark? Are Targeted Anti-Avoidance Rules in UK Tax Legislation Doing Their Job? Statute Law Review. 43(2), 153-169. https://doi.org/10.1093/SLR/HMAC003
  22. Khan, Z., Zeng, J., Knight, G., Rajwani, T., & Pattnaik, C. (2023). Non-market strategies and disruptive innovation in the platform economy. Journal of International Management. 29(5). https://doi.org/10.1016/J.INTMAN.2023.101047
  23. Kliestik, T., & Ihnatišinová, D. (2021). Digitalization of tax administration communication under the effect of global megatrends of the digital age. SHS Web of Conferences. 92, 02022. https://doi.org/10.1051/shsconf/20219202022
  24. Liang, Y. Y., Guo, L. L., Li, J. L., Zhang, S., & Fei, X. Y. (2021). The Impact of Trade Facilitation on Cross-Border E-Commerce Transactions: Analysis Based on the Marine and Land Cross-Border Logistical Practices between China and Countries along the "Belt and Road". Water. 13, 3567. https://doi.org/10.3390/w13243567
  25. Li, H. D. (2022). Thoughts on International Tax Avoidance and Anti-tax Avoidance in Digital Economy. Journal of Finance and Accounting for International Commerce. 22, 83-85.
  26. Li, H. L. (2018). Reflections on the international tax rules of income attribution under the digital economy business model. Journal of Taxation Research. 7, 76-83. https://doi.org/10.19376/j.cnki.cn11-1011/f.2018.07.015
  27. Li, T. C., & Yang, L. (2021). The Effects of Tax Reduction and Fee Reduction Policies on the Digital Economy. Sustainability. 13, 7611. https://doi.org/10.3390/su13147611
  28. Lim, H. (2022). Benefit attribution in financial systems with bilateral netting. Finance Research Letters. 45. https://doi.org/10.1016/J.FRL.2021.102179
  29. Liu, Q. Z., & Zhang, X. K. (2023). A Study on the Effects of Tax Reduction Policies on Fiscal Sustainability in China. Sustainability. 15(10), 7831. https://doi.org/10.3390/su15107831
  30. Lu, Y., Zhao, Y. Q., Li, Y. H., & Cao, Y. H. (2023). Direct Tax Burden, Financing Constraints, and Innovation-Based Output. Sustainability. 15(21), 15275. https://doi.org/10.3390/su152115275
  31. Luo, Q. (2021). The evolution of international tax governance from bilateral to multilateral: new pattern, new challenges and new trends. Journal of International Taxation. 1, 20-26. https://doi.org/10.19376/j.cnki.cn10-1142/f.2021.01.003
  32. Ma, S. Z., & Guo, J. W. (2020). Global Economic Governance in the Era of Digital Economy: Influence Deconstruction, Characterization and Orientation Choice. Journal of Reform. 11, 69-83.
  33. Martin, H., Rasmus, C. C., & Tovony, R. (2023). Developing influence: the power of ‘the rest’ in global tax governance. Review of International Political Economy. 3(30), 841-864. https://doi.org/10.1080/09692290.2022.2039264
  34. Martina, B., Tobias, B., Bodo, K., & Nadine, R. (2020). Corporate Taxes, Patent Shifting, and Anti-avoidance Rules: Empirical Evidence. Public Finance Review. 48(4), 467-504. https://doi.org/10.1177/1091142120930684
  35. Miloš, M., Sandro, R., & Boris, D. (2023). What drives the performance of tax administrations? Evidence from selected european countries. Economic Modelling. 121, 106217. https://doi.org/10.1016/j.econmod.2023.106217
  36. Mongrain, S., David, O., & Tanguy, Y. V. (2023). Tax competition in the presence of profit shifting. Journal of Public Economics. 224. http://doi.org/10.1016/J.JPUBECO.2023.104940
  37. Mpofu, F.Y. (2022). Taxing the Digital Economy through Consumption Taxes (VAT) in African Countries: Possibilities, Constraints and Implications. Int. J. Financial Stud. 10, 65. https://doi.org/10.3390/ijfs10030065
  38. Nataliia, S., & Halyna, K. (2016). Qualitative characteristics and principles of financial reports in the context of disclosure of information about the enterprise as a subject of tax relations. Economics & Education. 2(1).
  39. Popescu, C. R. G. (2020). Sustainability Assessment: Does the OECD/G20 Inclusive Framework for BEPS (Base Erosion and Profit Shifting Project) Put an End to Disputes Over The Recognition and Measurement of Intellectual Capital? Sustainability. 12(23), 10004. https://doi.org/10.3390/su122310004
  40. Rasmus, C. C., & Martin, H. (2020). The rise of China and contestation in global tax governance. Asia Pacific Business Review. 2, 165-186. https://doi.org/10.1080/13602381.2022.2012992
  41. Ruan, M. T., & Zhao, X. L. (2022). Fiscal Pressure, Policy Choices and Regional Economic Disparity: Evidence from a Natural Experiment in China. Sustainability. 14, 12402. https://doi.org/10.3390/su141912402
  42. Shangguan, X. M., Hashmi, S. M., Hu, H. Y., & Wong, W. K. (2022). Tax competition, environmental regulation and high-quality economic development: An empirical test based on spatial Durbin model. Front. Public Health. 10. https://doi.org/10.3389/fpubh.2022.982159
  43. Sun, H. M. (2021). Some understandings on global tax governance in the era of digital economy —— Based on the perspective of "two pillars" scheme reaching consensus. Journal of Fiscal science. 11, 26-34. https://doi.org/10.19477/j.cnki.10-1368/f.2021.11.008
  44. Toledo, K., & Alvarado, A. (2023). Tackling BEPS in the Global South: Evidence from Peru’s tax reform. Economic Systems. 47(3). https://doi.org/10.1016/J.ECOSYS.2023.101122
  45. Vivek, S., & Somesh, K. S. (2019). Globalization and Tax Jurisdiction. ZENITH International Journal of Multidisciplinary Research. 9(2), 58-64.
  46. Wang, C. (2023). Can rural human capital inputs enhance agricultural total factor productivity? - Based on the dualistic economic structure perspective. Review of Economic Assessment. 2(3), 20. https://doi.org/10.58567/rea02030005
  47. Wang, H. Y. (2022). The promotion path of China's international discourse power under the background of great changes in the world in the past century. Journal of Research on world socialism. 7(12), 108-115+132.
  48. Waylen, G. (2022). Gendering global economic governance after the global financial crisis. Review of International Political Economy. 29(4), 1007-1026. https://doi.org/10.1080/09692290.2021.1888142
  49. Wen, Z. (2019). The failure of "tax haven" opens a new chapter for global tax governance. Journal of Tax collection and payment. 2, 55-56.
  50. Wibisono, E. (2023). The digital entrepreneurial ecosystem in the European Union: evidence from the digital platform economy index. European Planning Studies. 31(6), 1270-1292. https://doi.org/10.1080/09654313.2023.2202683
  51. Wouter, L. (2019). Great powers in global tax governance: a comparison of the US role in the CRS and BEPS. Globalizations. 16(1), 104-119. https://doi.org/10.1080/14747731.2018.1496558
  52. Wu, J., Zheng, S. Y., & Tang, Y. (2021). Does ESG Disclosure Help Improve Intangible Capital? Evidence From A-Share Listed Companies. Front. Environ. Sci. 10. https://doi.org/10.3389/fenvs.2022.858548
  53. Xu, J. B., Zhu, M. L., Song, S. Y., & Wu, Y. X. (2022). Does government institutional reform deter corporate tax evasion? Evidence from China. PLOS ONE. 17(12), e0273372. https://doi.org/10.1371/journal.pone.0273372
  54. Zhang, K. W. (2022). The effect of logistics performance index of RCEP countries on China's export trade. Review of Economic Assessment. 1(1), 4. https://doi.org/10.58567/rea01010004
  55. Zhang, M. N. (2018). Strengthening global tax governance to deal with the spillover effect of American tax reform. Journal of Finance and Economy. 3, 1.
  56. Zhang, Z. L., Wang, Z. Y., Si, Y. W., & Li, T. Y. (2023). Administrative monopoly regulation and corporate tax avoidance - evidence from China. Finance Research Letters. 58. https://doi.org/10.1016/J.FRL.2023.104402
  57. Zhang, Z. Y. (2022). Global anti-tax base erosion rules: tax unilateralism under multilateral consensus. Journal of International Taxation. 10, 37-45. http://doi/org/10.19376/j.cnki.cn10-1142/f.2022.10.001
  58. Zhu, J. J. (2016). G20 institutional transition and global tax governance. The Pacific Review. 29, 465-471. https://doi.org/10.1080/09512748.2016.1154687
  59. Zor, S., Chen, J. R., Ailimujiang, J. T., & Wang, F. Y. (2023). Follow suit: Imitative governance, resource inclination, and regional innovation efficiency. Review of Economic Assessment. 2(1), 7. https://doi.org/10.58567/rea02010002