商务英语第九单元.ppt

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1、Chapter 9International Accounting and TaxationKey words:1.levy(V.)/impose:to demand payment of a tax 2.taxpayer:the one who pays the tax 3.multinational company:the company operating across the border 4.double taxation 重复征税 5.economic globalization 经济全球化 6.branch 分公司 7.subsidiary/affiliate 子公司 8.tax

2、 preference 税收优惠 9.tax avoidance 避税 10.bilateral:(an agreement,ect.)made between two sides 双边的 11.multilateral 多边的 12.financial situation 财务状况 13.tax system 税制 14.tax jurisdiction 税收管辖权 15.territorial principle：a government only levy taxes on the object of tax coming or existing within its border 属地

3、原则 16.personal principle:a government only levy taxes on the income of its citizen and resident 属人原则Background Knowledge 1.The definition of international taxation.It refers to the international influence of taxation and tax coordination(tax distribution)among different countries.Two basic principle

4、s of determing tax jurisdiction:territorial principle personal principleBackground Knowledge 2.Tax consideration influence the decisions of the multinational corporations.Background Knowledge 3.Types of the international taxes.taxdirect taxes(cant be shifted)income taxesindirect taxes(can be shifted

5、)consumption taxes9.2 International Taxation Learning Objectives:1.Know what is international taxation;2.Know two general principles of taxation;3.Know the types of taxes;Learning Objectives:4.Understand how can the taxes influence the multinational companies decisions;5.Have a general idea about ho

6、w to reduce the tax burdens by assets depreciation and how to avoid tax by transfer pricing;Learning Objectives:6.Master key words、phrases and expressions in this section.9.2.1 Introduction 1.Tax considerations strongly influence decisions on:where to invest;（low-tax countries or areas)what form of

7、business organization to employ(branch and subsidiary);how to finance(using own funds,borrowing,issuing bonds and stocks);when and where to recognize elements of revenues and expenses;what transfer prices to charge;2.Characteristics:1.Taxation is the largest expense of most businesses except cost of

8、 goods;2.Management has limited control over tax expenses;3.National tax systems are diverse and complex;(the 15 members of EU;the different rules regarding the taxation of foreign source income)Characteristics:4.International tax agreements,laws and regulations are constantly changing;5.Changes in

9、one countrys tax provisions have cmplex and wide-ranging effects in a multinational tax planning system.9.2.2 Initial Conceptstwo general principles of taxation 1.Tax Neutrality It means that taxes have no effect(are neutral)on resource allocation decisions.In reality,taxes are seldom neutral.Initia

10、l Conceptstwo general principles of taxation 2.Tax Equity It means that taxpayers who are similarly situated should pay the same tax.However,there is much disagreement over how to interpret this concept.9.2.3 Diversity of National Tax Systems Note:Exports seldom trigger a tax exposure in the importi

11、ng country;The companies operating abroad subject themself to another countries taxes.9.2.3.1 Types of Taxes 1.the corporate income tax(25%)Its levied on annual net profit of corporates.A important source of government revenue.Since the mid-1980s,the international trend has been to lower income tax

12、rates.Types of Taxes 2.withholding taxes The taxes imposed by governments on dividend,interest,and royalty payment to foreign investors.These taxes are typically withheld at the source by the paying corporation.Dutch purchaserItalian brokerage companybuy bonds90%interestTax collector10%interestwithh

13、olding taxes They are often modified by bilateral tax treaties.Types of Taxes 3.Value-added tax Its typically imposed on the value added at each stage of prodution or distribution.Applies to total sales less purchase from any intermediate sales unit.Merchant ANorwegian wholesalerMerchant Bbuy500,000

14、sell600,000Value added tax=100,000 tax rateHow to calculate?In practice:payable tax amount=output V AT-input V ATA B C Dconsumer10,000170015,0002550Tax authority20,00034001700850850Consumers ultimately bear the cost of the value-added tax.Types of Taxes 4.border taxes Its levied on imports by the cu

15、stom of importing country.Such as customs or import duties.The purpose is to improve the competitiveness of domestic goods price.Types of Taxes 5.the transfer tax This tax is imposed on the transfer of items between taxpayers,such as transfers of real estate,shares,or bond,land or other property.It

16、can have important effects on business decisions.9.2.3.2 Tax Burdens It refers to the tax amount born by taxpayers.affected factorstax ratetax baseTwo methods of lightening tax burdensmethodsaccelerated depreciationtransfer pricingincentive policymethod of tax avoidance 1.accelerated depreciation de

17、preciationThe fixed assets lose value over a period of time as they are used.This loss of value is called depreciation.Its expired cost.Depreciation methodsStraight-line fashionaccelerated depreciation Straight-line fashion An equal portion of assets cost is commenly expensed each reporting period.F

18、or example:acquisition cost:$4500 expected life:4years net residual value:500$yearly depreciation charge=(4500$-500$)/4=1000$/per year accelerated depreciation method Within the set period,accrue more depreciation charge in earlier stage,but less in later stage to recover the fixed assets beforehand

19、.Advantages:Postpone paying taxes;Be beneficial for fixed assets renovation;Take into consideration the invisible loss of value;2.Transfer pricing Transfer price,the price at which an item is transferred internally between two units of the same company.For example:goods or services from a parent com

20、pany may be sold to a foreign subsidiary.Its usually used for international tax avoidance.1.accelerated depreciation depreciationThe fixed assets lose value over a period of time as they are used.This loss of value is called depreciation.Its expired cost.Depreciation methodsStraight-line fashionacce

21、lerated depreciation Ahigh-tax country Blow-tax country(operate in A)(operate in B)parent companysubsidiarySell at low priceBuy at high price1.accelerated depreciation depreciationThe fixed assets lose value over a period of time as they are used.This loss of value is called depreciation.Its expired cost.Depreciation methodsStraight-line fashionaccelerated depreciation