WTO And The Reform To The Foreign-invested Enterprises Tax Laws Of China

The foreign-invested enterprises preferential tax laws have greatly promoted the development of the concerning causes of the opening to the outside world policy and played a positive role in attracting investment from outside since they carried out more than twenty years ago. But now these laws are bringing unfavorable factors to self-invested enterprises when they compete against foreign-invested enterprises on the same market, preventing them from further development and entering the world market. As China has been a member of WTO, the reform of foreign-invested enterprises preferential tax laws should be put into action gradually under such a historic condition. China has to establish a standard and equal law system on tax in order to suit that of WTO(esp. laws on national treatment), which means all enterprises pay tax according to same laws, no matter foreign-invested or self-invested. Now we should combine the foreign-invested enterprises income tax law and the self-invested enterprises income tax law and put the supervision power under one administrative office which will set the form and level of tax, establishing a single standard set of preferential law on tax. We need to take a further consideration of the preferential tax laws of nowadays, thus promote the adjustment of industrial structure and the coordinated growth of regional economy, by establishing a now set of foreign-invested enterprises preferential tax laws which meet the destination of our government's industrial development policy and regional development strategy. Only by providing equal treatment on tax to foreign-invested and self-invested enterprises and adjusting the content and form of preferential tax laws according to industrial policy, can China's economic development under WTO structure be provided an efficient and equal environment of tax laws system and merge into the great tide of world economic entity. Through thoroughly analysis and comparison with similar tax during different time in the past and in different countries now, the paper praised the achievement which the foreign-invested enterprises preferential tax laws in China have made in certain time and certain place. Then the paper analyzed the fact that the laws showed influences in reality as the market economy was developing in our country. The concept of freedom, equality and justice in WTO and the trend of economy globalization force China to give a deep consideration to the foreign-invested enterprises preferential taxlaws. That is from this point, WTO will affect the laws deeply, even though the ruler and regulations in WTO will not have great and fundamental impact on the foreign-invested enterprises preferential tax laws and there is no need to change them on a large scale. The paper proved the feasibility of making adjustment of the foreign-invested enterprises preferential tax laws under WTO structure, from three aspects ,historical and realistic lessons developing trends of outside and inside ,management strategy of enterprises .Following these ,the paper pointed out the direction that the foreign-invested enterprises preferential tax laws should take and drew a conclusion that the leading direction of the transformation was lifting the super-citizen treatment of foreign-invested enterprises on and carrying out the same set of tax laws in order to offer an equal environment of competition for all enterprises. Led by this , the paper put forward the way of transformation of foreign-invested enterprises preferential tax laws in detail at last.(1)make clear the main body of the foreign-invested enterprises preferential tax laws to pledge it legal; (2)transform the supervision structure of tax and standardize the regional preferential tax laws; (3)establish the management system of tax budget to raise the efficiency of tax preference; (4)set up a single set of preferential tax laws on the basis of a single set of tax laws to give equal legal position to both foreign-invested and self-invested enterprises ;(5)adjust the structure of tax preference to make it more suitable to the need of China's economic development and international practice ;(6)adjust the model of tax preference and diversify the form and content of it ;(7)improve investment environment to make the foreign-invested enterprises preferential tax laws play better role. Only by adjusting the content and form of preferential tax laws in an all-round way, can China's economic development under WTO structure , be provided an efficient and equal environment of legal system on tax laws and merge into the great tide of world economic entity.