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Record W2126822924 · doi:10.7916/cjtl.v1i1.2793

“Establishment”: A Core Concept in Chinese Inbound Income Taxation

2010· article· en· W2126822924 on OpenAlexaff
Wei Cui

Bibliographic record

VenueeYLS (Yale Law School) · 2010
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicTaxation and Legal Issues
Canadian institutionsUniversity of British Columbia
Fundersnot available
KeywordsEconomicsForeign portfolio investmentInternational taxationCurrencyPortfolioForeign direct investmentChinaDouble taxationInterpretation (philosophy)Income taxPortfolio investmentCapital (architecture)Withholding taxTax policyTax lawGovernment (linguistics)International economicsInternational tradePublic economicsMacroeconomicsTax reformReturn on investmentFinancial economicsOpen-ended investment companyPolitical scienceLaw

Abstract

fetched live from OpenAlex

A basic similarity between the Chinese approach to international income taxation and that of many other countries is the two-tiered system China uses to tax inbound foreign investments: some items of income earned by foreigners are taxed on a gross-income basis, primarily by way of withholding, while others are taxed on a net-income basis, through the filing of annual tax returns that account for both income and expenses. In the U.S., as a comparative example, whether an item of income is subject to one or the other mode of taxation turns upon whether the foreign recipient of income is engaged in a “trade or business” in the U.S. and whether the income is “effectively connected” with such U.S. trade or business. In China, a similar determination for a foreign non-individual taxpayer depends on whether the foreign entity’s income is effectively connected with an “establishment or site” (“jigouchangsuo,” or “establishment” for short) in China.2 The existence of this point of resemblance between Chinese and American inbound income taxation is in itself unsurprising. There is, after all, the income tax treaty concept of “permanent establishment,” which determines whether the business profits of an enterprise are taxable on a net-income basis in the country where the income arises. This suggests that most countries adopt some combination of taxation on the basis of net and gross income for inbound investments. However, U.S. tax lawyers generally are careful in distinguishing between domestic and treaty law concepts. In the U.S., for example, the “U.S. trade or business” concept carries most of the weight in determining whether foreigners might be taxable on a net-income basis, whereas the “permanent establishment” concept performs, for the most part, a secondary function in determining how a nonresident would be taxed in the U.S. Similarly, it is prudent to expect that the “permanent establishment” concept would not capture how other countries draw the line between net- and gross-income basis taxation, and this determination for a foreign investor in China will rest on the interpretation of the domestic Chinese concept of “establishment.” How China has drawn this line in the past, and how it might redraw it in the future, is the subject of this Article.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesInsufficient payload (model declined to judge)
Consensus categoriesInsufficient payload (model declined to judge)
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.562
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.001
Science and technology studies0.0000.000
Scholarly communication0.0010.002
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0030.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.012
GPT teacher head0.251
Teacher spread0.239 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; both teacher heads agree on what is shown here.

Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2010
Admission routes1
Has abstractyes

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