Tax Impact On The Choice Of The Place For Investment Between Mainland China And Hong Kong By Multinational Enterprises

Attracting funds from foreign multinational enterprises has always been the focus of all economies over the world. A number of reasons would be considered by multinational enterprises on the choice of the place for direct investment. Those regarded as intangible factors include freedom of trade, rule of law, cleanness of government and fair business environment. Those regarded as tangible factors include availability of space and infrastructure required. A comprehensive tax regime is a crucial factor. This thesis covers a detailed analysis of tax benefit granted to foreign investors by Mainland China and Hong Kong and a thorough comparison of impact of the policy for attracting funds from foreign multinational enterprises adopted by Mainland China and Hong Kong. A Study on the anticipated change on the policy for attracting funds from foreign multinational enterprises would be adopted after China entry into the WTO. Any change on the choice of the place for investment would be made by foreign multinational enterprises between Mainland China and Hong Kong after China entry into the WTO.