Thinking About Reforming Enterprise Income Tax System Of Our Country

The enterprise income tax is a crucial one which country adjusts an enterprise income level. Because of neutrality of value added tax, its adjustment function is outstanding. The revenue scale has been rising rapidly, and its main status has been consolidated. The faults of present enterprise income tax system cannot make it function, even hamper the development of the economy, it is urgent to reform. The article takes the initiative to the faults of the present enterprise income tax of our country, I put up my views of enterprise income tax reform. The article is classified into four parts:First part: Necessity to reform present enterprise income tax system of our country. In our country, present enterprise income tax consists of two sets of systems which inside and the foreign corporate are established separately, And big difference exists in taxpayer's distinguishing, the tax base confirmation, preferential policy of tax revenue and tax burden aspect and so on. According to analysis to present situation of enterprise income tax system of our country, its disadvantage mainly has as following several aspects. The first is that the tax legislation of enterprise income tax is not normal, and it does not conform to legal system advancement of the tax revenue. The second is that the differential tax treatment of the economic subject cannot make the competition fair and it is unsuitable for that China joins WTO. The third is that the old tax system is not suitable to the changes of the tax resource structure, and it is disadvantageous to enterprise competitive ability. The fourth is that the enterprise income tax and individual income tax create the economic double tax. and it is disadvantageous to sustainable growth of investment scal. The fifth is that the specific provisions of enterprise income tax have larger flexibility, cannot be operated uniformly and it is disadvantageous to the collecting standard unification of the tax revenue.Second part: Theory basis and the basic principle to reform enterprise income tax system. The reforming theory of international general tax system(including theory?of?equitable?taxation,theory?of?optimal?taxation ,theory?of?fiscal?exchange) lays theory foundation for reforming enterprise income tax system of our country. Since 20th century 70's end, overall tendency of reforming income tax system in the world is properly to simply tax system and moderately to reduce the tax burden, its reforming successful experience provides the beneficial model for reforming income tax system of our country. The basic principles of our reform on enterprise income tax are as follows: economical efficiency principle, administrative efficiency principle, fair tax burden principle .Third part: the enactment of the main tax elements of enterprise income tax, including taxpays, tax base, tax rate, tax preference, the locality of tax and so on.1.taxpayer .The enterprise income tax is levied on legal persons rather than the enterprises which are not. The definition is reasonable: Firstly, it is unified with Civil Code. Secondly, it is in accordance with the international practice. Thirdly, the distinction between enterprise income tax and individual income tax is more clear.2.tax base. According the basic theory on tax base, then identifies the taxable income and deduction .The unified enterprise income tax should keep the principle of widening tax base and convenience to supervisory. The taxable income on account benefit should be regulated according to Tax Code, form relatively separated confirmation principle of enterprise income tax, embody the tendency and requirement of appreciate separation Tax Code from account system. The deductions before tax comply with five confirmation principles: accrual principle, matching principle, relativity principle, certainty principle, rationality principle. It is defined that the deduction before tax of the wages and the welfare funds, the amortization of fixed asset, the deduction of donating disbursement, the deduction of advertising exp...