Thoughts On The Income Tax Uniform Legislation Of Domestic And Foreign Enterprises In China Under The National Treatment Principle

Since the reform and opening to the world, the preferential policies on foreign enterprises, including two different income tax policies on domestic and foreign enterprises, have been practiced in our country to attract foreign funds, arrangement experiences and scientific technology. But with China joining WTO, a host of problems and contradictions have emerged day by day because of the unfair competition between domestic and foreign enterprises, the high taxation cost, the unbalanced economic development between districts industries, and the disruption of normal market economic order, caused by the different income tax policies on domestic and foreign enterprises, compared with a series of standard spirits, as justice and efficiency, which are demanded by WTO National Treatment Principle (NTP). The economic industry circles have given an increasingly powerful voice for the reform of enterprises income tax, and in the meantime, the economic theory circles have also pay more attention to this problem. However, up to now, all-round and systematic research papers have not been seen except some topic research writings. Therefore, the research on the subject the Income Tax Uniform Legislation of domestic and Foreign Enterprises in China under the National Treatment Principle has great theoretical significance and realistic value. This paper, from the angle of NTP, explores the problems, such as the historical development of the enterprise income tax in our country, NTP's influence on and requirements for taxation, the practical effects on inviting business and attracting foreign funds by carrying out the preferential taxation policies, the problems and negative effects existing in two different income tax policies on domestic and foreign enterprises, and the necessity of and the thoughts on the income tax uniform legislation. It presents creatively the detailed legislation idea of formulating the uniform Corporation Income Tax Policy on domestic and foreign enterprises according to the guiding principle of Loose Tax Base, Low Tax Rate and Little Privilege, and emphasizes heightening the legal position of Corporation Income Tax Law through People's Congress legislation, practicing uniform and standard taxation privilege legal system, cutting down tax rate, and standardizing tax base, so as to embody the requirements of collecting tax by operation of law, justice and efficiency. So this paper has great theoretical creative value and practical guiding significance, and gives a relatively complete answer sheet of legal and theoretical consideration for our country's enterprise income tax reform in preparation.