Problems and countermeasures of fiscal tax base erosion under the background of the digital economy

Abstract

With the vigorous development of the digital economy, the traditional tax methods are difficult to adapt to the virtual digital trading activities, resulting in the problem of mismatch, and thus causing the related issues of the erosion of the fiscal tax base. By identifying the basic characteristics of the virtual, scale and interconnection of digital economic activities and combining the tax elements, this paper finds that there are problems such as unclear taxpayer, unclear tax object, and difficulty in defining the tax rate, which have caused the erosion of the tax base in many aspects, and the transnational activities have intensified the contradiction of the erosion of the tax base. As a result, the sources of government revenue are damaged, the gap between regional fiscal potential energy is further divided, and the space finance is vacant. Furthermore, it proposes to identify independent taxpayers, add resident offices, and actively integrate into the international tax system based on the independence of taxpayers and transaction businesses.