Double Tax Avoidance Agreement and Its Legal Regulation: Taking China as an Example

Abstract

Double tax avoidance agreements (DTAs) play a pivotal role in facilitating international trade, exemplified by China's proactive engagement in 1983 when it signed its first bilateral tax agreement with Japan. Germany and numerous other countries have followed suit, recognizing the importance of these agreements in mitigating tax-related impediments to cross-border commerce. China's commitment to DTAs is clearly manifested in its extensive network of agreements, as corroborated by the OECD's comprehensive list. Remarkably, China has established DTAs with 102 countries and regions, underscoring their global significance not only for China but for nations worldwide. This article comprehensively explores the subject matter. It commences by elucidating the fundamental concepts and principles underpinning DTAs, followed by an examination of their legal regulations and distinctive attributes. Furthermore, it delves into the potential risks inherent in these agreements and their consequential impacts on international trade and fiscal policies. A more concrete understanding is provided through an in-depth analysis of specific DTAs, with a primary focus on the China-US and China-India agreements. By dissecting these pivotal agreements, the article aims to illuminate the legal frameworks that govern international taxation, thus enhancing comprehension of their implications for global economic cooperation and trade.