Research on China´s E-Commerce Taxation Based on the Principal-Agent Mechanism

With the rapid popularization of Internet, e-commerce and e-trading enter people´s lives as a convenient, fast transaction mode; however, it also brings a series of problems to the traditional tax system and increasingly affects the tax revenue of many countries. The paper, from the perspective of asymmetric information about government and those e-commerce enterprises, uses the method of principal-agent mechanisms to analyze the dilemma in the process of e-commerce development: it is necessary to encourage the development of e-commerce, but the loss of tax revenue must also be prevented. At the end of the paper, we propose that the governments should take out countermeasures to incentive e-commerce enterprises to resolve the problem.