The impact of the digital economy on tax administration

The impact of the digital economy on tax collection and management is to increase the mobility of tax sources.

In addition to traditional physical places, the digital economy has made intangible assets and data owned by taxpayers the main factors of production, and the places of transaction have become flexible and changeable. The digitization of transactions leads to a stronger mobility of tax sources as well. In the era of digital economy, the flow of data and **** enjoyment has subverted the traditional way of doing business, presenting a business model of multi-industry integration.

The original "enterprise-employee" contract system has transitioned to a "platform-individual" cooperation model, resulting in the emergence of a large number of natural persons paying taxes. The virtual nature of the Internet has blurred the real identities of the two parties to transactions in the digital economy, and it is difficult to determine the identity of taxpayers as they do not need to meet each other in order to reach a transaction, leading to more insidious tax evasion.

Initiatives to Deepen Tax Administration Reform in the Digital Economy:

First, deepen the reform of value-added tax (VAT) and consumption tax system. It mainly includes optimizing the structure of the VAT rate and implementing the "three tax rates to two tax rates" as soon as possible; further improving and optimizing the VAT deduction chain. Expand taxpayers' input tax credits related to production and operation, and open up the whole chain of credits; change the consumption tax from a centralized tax to a **** enjoyment tax.

Second, reduce the statutory rate of corporate income tax. China has introduced a number of preferential income tax policies, including those to incentivize various high-tech enterprises and industries, those to increase the opening up of the west and the development of free trade zones, and those to encourage the development of small-, medium- and micro-enterprises.

Third, further optimize the personal income tax system. First, the implementation of comprehensive personal income tax by family as soon as possible. The use of tax big data and the promotion of tax synergistic *** governance have provided the feasibility of levying tax on the basis of family income. Secondly, adjust the standard of basic deductions, expand special additional deductions and optimize the deduction standard according to the differences in expenditures of different regions and families.