In a world of globally integrated financial markets and high capital mobility, how to collect effective taxation of cross-border income has become problematic under international tax practices. A feasible method to solve the puzzle is to collect withholding taxes at source. This paper compares Chinese withholding taxation with other countries in the world from the aspects of tax base, taxpayers and tax rates. With such comparison analysis, it provides some helpful suggestions to improve Chinese withholding tax system.
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