Research On Some Legal Problems Of China's Combined Tax System

The new Corporate Tncome Tax Law, which took effect on Jan. 1,2008, reflects China's tax reform with the spirit of the times. The combined tax system is ruled by this law, compared with the usual "independent - the territorial tax system", has a distinct specificity. The combined tax system emphasise that different people are treated differently on the tax base, therefore, the combined tax system should be studied in depth. First, it is necessary to tidy up its terms, scope of application, as well as the associated systems, then further study the relevant legal issues.This article is divided into three parts, in addition to the introduction and conclusion:The first part, introduce the concept of the combined tax system, then analysise the gap between the combined tax system and the requirements of tax basic principles. At the basis of comparing transfer pricing with loss carry-over system, this thesis considers the creation of the system has a certain rationality and reduces some taxpayer's tax burdens to a certain degree. However, the differential taxation treatment on the basis of the economic property of enterprises is running against the goal of macroeconomic which is for the promotion of effective allocation of resources.In the second part, this thesis puts the combined tax system, and combines with the current actual situation, then analyses the problems of the system from four aspects.In the third part, according to the conclusions of the second part, takes the United States and France as examples, analyses their combined tax systems and make a comparison, and tries to make recommendations on how to improve the system.There are some innovations in this thesis as follows: analyses the combined tax system with tax basic principles, after analyzing the rational of the system, this thesis founds the system's drawbacks, thus the system should not be praised blindly. Second, through sorting of regulatory documents about the combined tax system, combining with practical difficulties in operation, this thesis discovers several questions of the system, then analyses the reasons and make recommendations accordingly.