Against the background of accelerated economic globalization, the State Administration of Taxation (SAT) has further determined new thinking in international tax management, emphasized the orientation of risk management of cross-border tax source and satisfying needs of taxpayers, paid more attention to improving the four major mechanisms, i.e., anti-tax avoidance mechanism, non-resident tax administration mechanism, “going-out” tax administration mechanism and coordination mechanism of international tax collection and administration, strengthened cross-border tax source management and taken countermeasures against erosion of tax base and transferring of profits. Recently, the SAT held the working conference on strengthening international tax administration of the national tax system to study, arrange and reinforce international tax administration work. The leadership group of the SAT attended the conference.

Wang Jun, the Administrator of the SAT, pointed out that China has made achievements in international tax administration, but is still facing increasingly difficult tasks, therefore, it is quite important and urgent to strengthen international tax administration. He required the taxation organs at all levels to earnestly implement the work requirements of the SAT, learn and roll out successful experience and continuously develop and create new work situation so as to push international tax administration to a higher level each year and achieve remarkable progress within three years.

The work report prepared by Wang Li, the Deputy Administrator of the SAT, on behalf of the Party Leadership Group of the SAT, reflects the significance and urgency of reinforcing international tax administration and presents the overall thinking on international tax administration: earnestly implement the spirit of the 18th National Congress of the CPC, focus on safeguarding taxation rights and interests of the State, orient towards risk management and needs of taxpayers, improve anti-tax avoidance work, non-resident tax administration, “going-out” tax administration and collaboration mechanism of international tax collection and administration, reinforce the legislative, information and talent guarantee for international taxation, and promote international taxation administration in an all-round way to improve the level of serving open economy.

As the priorityamong the nine major tasks of international tax administration, strengthening cross-border tax source risk management is refined into three aspects, i.e., creating process of cross-border tax source risk management, reinforcing the monitoring of risk analysis of cross-border tax source and making more efforts on coping with cross-border tax source risk. Wang Li required that risk management should be implemented across the entire management process of cross-border tax source, closed-loop management should be carried out, the work should focus on anti-tax avoidance,performing the tax convention as well as the high-risk analysis and monitoring of the overseas income of non-residents and Chinese residents, and that all units should explore measures to address risks of key sectors.

It is reported that strengthening risk management is for participating in the global tax governance, integrating international tax administration into the entire tax collection and administration, coordinating domestic tax and international tax at the macro level as well as tax revenue organization and safeguarding national tax rights and interests, combining domestic coordination and foreign cooperation to improve the level of international tax administration and safeguard national tax rights and interests.

Wang Li stressed that the four major mechanisms require strengthening and improving during the international tax work. In terms of carrying out anti-tax avoidance activities, intensify profit monitoring, promote standardized administration, expand business fields and create new ways of working. In the aspect of non-resident tax administration, conduct specialized administration, strengthen cooperation with resident companies in tax administration, carry out classified management and risk management and make great efforts to perform the tax convention. In respect of “going –out” tax administration, find out the base data of “going-out” companies, standardize the administration and prevent tax avoidance. In terms of collaboration in international tax collection and administration, strengthen system building, make the utmost of collaboration mechanism, and earnestly perform collaboration obligation.

Other four main tasks of international tax administration are optimizing cross-border tax payment service, improving international tax laws and regulations, strengthening information support of international tax administration and reinforcing organizational guarantee of international tax administration. According to Wang Li, currently, international tax administration organs are not fully standardized, and the issue of high-end talent shortage and drain is getting pretty serious. In the light of such situations, international tax administration staff should be properly allocated to ensure that international tax administration staff accounts for around 3% in total tax cadres in provinces and cities (regions) with concentrated cross-border tax source within 3-5 years.

Zhang Zhiyong, the Deputy Administrator, concluded that taxation organs at all levels should earnestly implement the spirit of the speech by Wang Jun and working report by Wang Li, and stressed again to proactively establish and improve four main mechanisms so that a complete work system and process can take shape, pay attention to initiation of risk management project, focus on information collection, analysis and research, conduct classified management, scientifically take countermeasures, undertake inspection and provide feedback when the issue has been solved, establish post responsibility system to perform the task and duties of each level, create work process, and evaluation and assessment mechanisms and conscientiously push forward the work. He also required to exchange and share successful experience and practices and learn from each other so as to fully mobilize the enthusiasm for working and continuously improve international tax administration.

At the conference, Shanghai Municipal Office of SAT, Shaanxi Local Taxation Bureau, Shenzhen Municipal Office of SAT, Xiamen Local Taxation Bureau, Jiangsu Provincial Office of SAT and Sichuan Provincial Office of SAT exchanged experience and ideas in terms of carrying out anti-tax avoidance activities, preventing abuse of tax convention, non-resident equity transfer and taxation, making use of international tax intelligence, strengthening information guarantee of international tax and “going-out” tax service. Leaders of all divisions of the SAT, bureau leaders of all provinces, autonomous regions, municipalities directly under the central government and municipalities with independent planning status as well as leaders of international tax administration department attended the conference at the main meeting venue in Beijing. After the conference, panel discussions were held. Main leaders of the taxation organs at all levels, relevant bureau leaders, department heads related and international tax administration staff attended the parallel sessions in various regions.

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