International Tax Planning Case Study: A Analysis of Alibaba

Abstract

Driven by economic globalization and digitalization, the cross-border e-commerce industry has developed rapidly. As an industry benchmark, Alibaba's international tax planning practices hold significant research value. This paper takes Alibaba as the subject to analyze the implementation paths, core elements, existing challenges, and legal basis of its tax planning. The research finds that Alibaba achieves tax optimization and improved cash flow by establishing subsidiaries in low-tax jurisdictions, building multi-tiered equity structures, employing transfer pricing and cost-sharing strategies, and fully leveraging tax incentives. Its approach is centered on legal compliance, business-tax synergy, and data informatization, while also facing challenges such as disagreements over tax residency determination. Relevant experiences can serve as a reference for cross-border e-commerce enterprises undertaking international tax planning.