Description

E-commerce can be described as the process of buying and selling of goods and services, or provision of digital services such as electronic advertising using the internet, mobile networks and commerce infrastructure with minimal or no direct human interaction. The e-commerce has been growing significance. In China alone, the digital economy in 2019 amounted to RMB 5.4 trillion, a staggering 36.2% of its GDP. The cross-border e-commerce turnover amounted to RMB 28.3 billion, a year-to-year increase of 31.4%. Much of these cross-border transactions escape enterprise income tax in China because there may not be a permanent establishment in China. Hong Kong has also revised its DIPN 39 to address the PE issue in relation to its cross-border e-commerce transactions.

The seminar would discuss about the China turnover tax implication on import of goods via e-commerce and the enterprise income tax implication to the enterprises selling to China via e-commerce. It will also discuss about the implication of the revised DIPN 39 for Hong Kong. Lastly, the seminar would also address the OECD BEPS 2.0 Pillar 1 proposal to deal with allocation of profits to market jurisdictions in which customers are located. The Pillar 1 proposal is expected to be implemented in 2021. It will address the e-commerce as well as the client facing business.