Comparative Study On The Law Of Corporate Income Tax On The People's Republic Of China And Taiwan

The commercial exchange between Taiwan and China has been increasing in recent year, to make both sides'investors understand the similarity and difference of the income tax laws on the both sides of the Strait, this thesis compares the income tax that is applicable to enterprises in China against the business profit tax of the Taiwan income tax law. An analysis and a summary will be given regarding tax structure; income, cost and expenses that have important significance on taxed income; tax reduction pertaining to tax payer's right. They will be used as reference for making investment decision in China for investors. The focus of this thesis will be based on the Taiwanese & Chinese income tax law and the regulations. Other related regulations will be the secondary focus and case study will also be included to compare the similarity and differences on the income tax law on both sides.During the research process, due to the difference of income tax legislation process on the both sides',it has been found that Taiwanese taxation system is more in accordance with practice. However, tax punishment is more severe China. Another finding is that the taxation on business undistributed earning is rather different on both sides of the Start.The conclusion of the thesis consists of the recommendation for the Chinese and Taiwanese governments and investors and future researcher. The recommendations for the Chinese government include the taxation system should be revised to encourage tax payers to honestly declare tax. The recommendations for the Taiwanese government include the following:(1) deadlines concerning drawback should also be determined in the tax law to protect tax payers'rights; (2) digitalized relevant tax information to facilitate tax payers'general inquiry. The recommendation for future research direction is comparison study on the actual tax bearing on both sides of the Strait.