The Impact Of The New EIT's Implement On Zhuhai's Region Economy

Enterprise Income Tax Law of the People's Republic of China(abbreviated as'new EIT Law') carries out the Unification of two sets of enterprise income tax laws to domestic enterprises and foreign-invested enterprises, it unifies the tax rate,tax deduction and the preferential tax policies of enterprise income tax. This change indicates that the market economy of China is growing up and normative.This reformation aims to creating the uniform and fair tax system. In the near future it might have some negative impacts to Zhuhai City, though it will help to facilitate the optimization of industry structure, establish a fair capital market in the long term. The biggest impact lies on the shift from the preferential tax rate and region to preferential industry. According to the estimation, in the next 5 years of the Unification of two sets of enterprise income tax laws, the tax burden of the foreign-invested enterprise in Zhuhai city will go up 10%, and the tax burden of the domestic enterprise will increase 5%. With the greater tension of the production elements such as ground rent,energy sources and the growing up of circumjacent cities, the pressure of new round industry adjusting is unprecedented in Zhuhai city. Basing on the analyzing of the similarities and differences of the former EIT and the new EIT, this article first points out the reforming outlines. Secondly, combining the developing characters of Zhuhai city, it discusses the impacts of the Unification of two sets of enterprise income tax laws to Zhuhai city. Finally, this article puts forward some suggestion on how to keep the predominance in the new era: Regarding the implementation as a turning point, the Zhuhai city government should ensure the whole revenue base and enlarge the city revenue increment. The government also should optimize the industry structure and improve the quality of utilizing foreign investments to keep the region developing advantages.