Research On The Methods Of Income Tax Preference For Foreign-invested Enterprises

Since the reform and opening of China, in order to introduce foreign capital on a large scale, our country has implemented a series of tax preference policies to foreign-invested enterprises. It is obvious that these policies has played an important role in development of economy. However, as the development of our economy, these policies bring some negative effects. So it is necessary to research on the problems in the tax preference policies to foreign-invested enterprises.In the designing and implement of any tax preference policies, it will come down to three main bodies of behavior: the government, taxpayers and the tax collectors. The behavior of these three main bodies will all affect the fact impact of the tax preference policies. But the taxpayer is the most important factor during the three of all, because the effect of the policy will be embodied from the behavior of the taxpayer ultimately. Therefore, it is favorable to study the behavior of the taxpayer during the implement of tax preference policies to foreign-invested enterprises. We can analyze the factors of the effect of the tax preference policies. It has important significance of theory and realism to consummate our tax preference policies.From the view of the taxpayer, his paper studied the preference methods of the income tax for foreign-invested enterprises, compared the change of the cash flow after income tax when the taxpayer use the tax preference, thereby find out the factors to influence the preference effect during theimplement of every tax preference methods, then put forward corresponding countermeasure and advice on choosing and actualizing of different methods of tax preference. The thesis includes six parts:The first of all is introduction, which explain the purpose of research, significance, and research status and development trend inside and outside of China.The second part summarizes the concept of income tax preference for foreign-invested enterprises, the evolvement of income tax preference policies for foreign-invested enterprises in China. The chapter also introduces the six main preference methods, including tax exemption, preferential tax rates, preferential tax rebate for re-investment, investment tax credit for invest, accelerated depreciation, and loss carryover or carry back.The third part expatiates on the actuality and problems during implement of the income tax preference policies for foreign-invested enterprises in our country. As the meantime of affirming the important role of these policies, I dissertates the bad effect, on the base of which, I analyzes the problems in these policies.From the behavior of the taxpayer, the fourth part analyzes the factors which influence the effect of the income tax preference policies for foreign-invested enterprises. It stress the emphasis on analyzing the factors which influence the effect of the income tax preference policies for foreign-invested enterprises.The fifth part is countermeasure and advice. On the base of the forward analysis, it puts forward the countermeasure and advice to consummate the income tax preference policies forforeign-invested enterprises.The last part is the conclusion, which summarizes the outcome briefly.