Study On The Reformation Of Corporation Income Tax System In Market Economy

The changes of Chinese corporation income tax system are very significant in the reformation of economic system. Not only in the urban economic innovation of 1980s, but the generalization of the market economy of 1990s, affiliation of the World Trade Organization (WTO) and the perfect of socialism market economy of 2000s as well, the reformations of corporation income tax have been taking important role. In this dissertation, the Jorgenson investment model and the economic efficiency of tax system are discussed in order to optimize the corporation income tax system. It is concluded that the tax system which according with business rule and being good to set up the evenhanded competitive environment is the best. However, there is a big gap between the optimum tax system and the present one. Firstly, It is inequitable that the tax system for the foreign-capital-invested corporation is different from the home-capital-invested corporation; Secondly, the overabundance of preferential policy of tax breach the original intention; Thirdly, the "over-separation" between the national tax law and international business accounting rule result in enhancement of the burden of taxation and the executive cost. In this research, in order to optimizing the tax system according to the situation of China, the corporation income tax system is investigated deeply from the aspects of unifying the taxpayer, normalization the tax base, adjusting the tax rate and preferential tax, coordinating the corporation income tax and the individual income tax, standardization of the capital gains tax.