In the era of economic digitization, the mismatch between the areas of tax collection and value creation has worsened the tax base erosion and profit transfer. The issue of revenue characterization and profit attribution in digital commercial activities has a significant impact on the implementation of tax administration rights in different countries. To tackle the challenges brought by the digital economy to the tax order, some countries have taken the lead in exploring the digital service taxes, aiming to expand the scope of permanent establishments and embed the user to engage in the value creation system, which helps to endow the source country with tax administration rights for the value creation of the digital economy. Currently, in the stage of rebuilding the order of tax administration in the digital economy, China shall start from the connectivity, and reconstruct the definition rules of digital tax administration that are suitable for China on the basis of the advanced experience in the world.

Fan Bai. An Analysis on the Path of Tax System Reform in the Context of Digital Economy. Academic Journal of Humanities & Social Sciences (2024) Vol. 7, Issue 5: 107-112. https://doi.org/10.25236/AJHSS.2024.070518.

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