In digital business models, multinational operators occupy user values through users' consumption of free digital goods and services, but do not acquire monetary value through a tax entity. This is a breach of normative logic of the traditional income tax law, making it impossible for jurisdictions to tax user values by relying on income tax laws. User value is not just the value of users' data or users' loyalty. User-located jurisdictions could prescribe user value as the value of users' participation in user networks, or the value of user digital labor, and therefore claim all the revenues of an operator to be created by users and make digital tax law using the total amount of digital transaction as the tax base. In order to reduce norm conflicts and reach a minimum consensus between countries, the OECD has abandoned the practice of characterizing user value and employed quantitative rules instead. In carrying out digital tax legislation according to the logic of "Pillar One", China needs to make such new rules as legal entity consolidated tax rules, rules on treating overseas transactions as domestic transactions, residual profit calculation rules, and tax administrative rules governing overseas transactions. Meanwhile, we should be aware of the weakness of the quantitative logic of "Pillar One", make clear the relationship among market, market value and users, and try to push digital tax legislation back to qualitative rules of user value. |