Problems and Experience in Reforming the Taxation of the Digital Economy: the Case of the People’s Republic of China

The issues of tax administration, the taxation of intangible assets, and tax collection are pertinent to almost every national economy, and they are becoming even more complex with rapid digitalization. Alongside these challenges of old contradictions and the emergence of new challenges, the modern economy structure also offers opportunities enabled by advanced digital solutions. This article examines the People’s Republic of China’s (PRC) experience researching and addressing taxation problems in the context of rapid digitalization. Three components of the digital economy, which are characteristic of any country, have been identified: the information and communications industry, traditional industries, and digital management. The main tax collection problems in the PRC economy, which is actively transitioning to the digital stage of development, are summarized. The opinions of Chinese researchers on reforming the country’s tax system were studied, and principles for building such a system in the new realities were compiled based on their insights. A situation is developing in Russia that is similar to China’s, enabling a more active exchange of experience between the two countries and, to a certain extent, the synchronization of taxation systems in the digital sphere to strengthen economic cooperation between China and the Russian Federation.