Abstract
Electronic commerce provides a fundamentally new way of conducting commercial transactions. The economic distance between producers and consumers will shrink and traditional intermediaries will be replaced. New closer relationships will be forged between businesses and consumers and between the different parts of global enterprises. New challenges will arise in the areas of the taxation, where goverments will continue to seek to raise revenue without distorting economic and technological choices. The taxation aspect of electronics commerce should firmly based on the Taxation Framework Conditions, including Neutrality, Efficiency, Certainty and Symplicity, Effectiveness, Fairness, Flexibility, as major elements. These principles can be applied through the existing tax rule, and should not be intended to impose a discriminatory tax treatment on e-commerce. OECD should take initiatives in reaching international concensus befoe any major national initiatives are taken in.
