The sustained and vigorous development of the digital economy is profoundly reshaping traditional economic operating models. This transformation simultaneously impacts the existing tax legal framework and poses significant challenges. Establishing a digital services tax legal system compatible with digital economic development has become an inevitable choice. Grounded in the specific realities of China's digital economic development, this paper thoroughly examines the theoretical basis for establishing a digital services tax legal framework. It analyzes the current challenges in advancing this system, including gaps in the legislative framework, double taxation in cross-border transactions, and insufficient supporting enforcement mechanisms. The paper also proposes a pathway for establishing a digital services tax legal system tailored to China's fundamental national conditions. It addresses three dimensions: clarifying the fundamental objectives and basic principles of legislation, refining the hierarchical legal framework, and detailing the specific implementation measures. It aims to foster synergistic and sustainable development between the digital economy and the real economy.
Hang Yuling (Wed,) studied this question.