Under traditional modes of transaction, legislation of various nations or bilateral agreements have mainly formulated profit source as seat of permanent body.

E-commerce has made impact on the conventional international tax system in the following aspects:permanent establishment concept,criteria of residential identity,classification of the quality of income.

That is,the country that the general permanent establishment lies in has the exclusive taxing right.

The function of the concept of permanent establishment in the international tax agreements is to indicate substantial economic connections between non-resident s transnational business activities and source states.

Besides this, electronic commercial affairs impact the rules of income limit, impact the rules of the identification of income resourses and inpact the rules of permanent organizations.

Electronic commerce is charging traditional international taxation rules at three aspects:a permanent organization principles,resident identity\'s supposing standard and qualitative analysis method of income,which harm the taxation exercise control right of income source country and resident portion country.