The 2025 eleventh issue of International Taxation asks whether AI deserves a tax of its own. The authors are cautious: China's AI industry is still young, policy is oriented toward supporting it, and taxing now is unrealistic. Yet opaque algorithms, data-security exposure and fuzzy liability already muddy basic concepts such as taxpayer, object of taxation and tax base. They propose two steps: near-term incentives that both help industry and cushion displaced workers instead of spreading subsidies thin, then a longer-term framework that rewards innovation without losing fairness. On administration they call for a national integrated tax data and intelligence platform, solid data-security rules, a stronger base for data-driven human-machine collaboration, and multilateral talks on cross-border rules.
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Taxing Artificial Intelligence: International Practice and a Chinese Approach
The 2025 eleventh issue of International Taxation weighs whether AI should get its own tax. It notes that while AI empowers administration, opaque algorithms, data-security risks and hard-to-assign liability complicate the definition of taxpayers, objects of taxation and the tax base. China's AI sector is still early-stage, so taxation is premature; the authors recommend near-term incentives paired with worker-protection measures, moving from broad to targeted support, and a longer-term AI tax framework that rewards innovation while keeping fairness. On administration they propose a national integrated tax big-data platform, data-security rules, data-driven human-machine collaboration and multilateral cross-border governance.
2026-11-03