Anti-abuse Rules In Tax Treaty Under BEPS Action 6------Based on China

Abstract

With the globalization of the economy, abusive tax avoidance of tax agreements has emerged, bringing challenges to the tax administration systems of various countries. Preventing the abuse of tax agreements is an important issue in the theory and practice of international tax law, and the BEPS Action 6 provides clear guidance on preventing the abuse of tax agreements, and the relevant provisions have been incorporated into the BEPS MLI, which has been widely used. Against this background, this paper clarifies the concept of tax treaty abuse, summarizes the anti-abuse rules in BEPS MLI and their application in China. Based on this, the paper analyzes the application methods and existing problems of the principal purpose test rule and the limitation of benefits rule. At last, a series of practical suggestions are put forward from the micro and macro perspectives, taking into account China's needs and grasp the core principle of "substance over form".