Alibaba and Baidu are frequently referred to as the "Chinese Amazon" and the "Chinese Google." However, these companies and many other Chinese multinational enterprises (MNEs) take the position that they are not resident enterprises for Chinese tax purposes. This position has afforded these MNEs substantial tax advantages as they can accumulate untaxed profits in tax havens. This seminar will analyze the tax position of such Chinese MNEs from legal, empirical, comparative, and policy perspectives.

We will examine the legal basis of this tax position and the advantages it provides. We will present our analysis of the tax residence positions of the largest 80 Chinese MNEs with tax-haven-incorporated parent companies traded on major U.S. stock exchanges. Our comparative analysis will show how other large economies implement tax measures to prevent their companies from avoiding taxation in similar situations. We will consider the expected implication of the global minimum tax on Chinese MNEs with tax-haven-incorporated parent companies. We will also explore potential reforms.