| As China’s market economy and capital investment continue to develop and prosper in recent years, limited partnership, which is an ancient business organizational form with delicate organizational designs and strong adaptability to any policies, has grabbed the attention of both business and academic circle. On August27,2006, the23rd session of the10th National People’s Congress Standing Committee passed a revised Partnership Enterprise Law, in which new terms on limited partnership are added. In Hangzhou, the capital city of Zhejiang Province where private sector has always been blossoming, limited partnership are developed especially fast.However, when it comes to the matter of business income tax of limited partnerships, we only have one law to refer to——"Notice On income tax of limited partnerships"(finance and taxation[2008] No.159). This Notice, which comprised of merely six terms, only lays down major principles on income tax of limited partnership. But more detailed and specific rules are missed, such as rules on tax-paying bodies, tax-paying locations, reductions on cost, anti-tax evasion and international taxation cooperation and so on. Therefore, it is of great significance that the taxation system concerning limited partnership enterprises should be completed as soon as possible.This essay consists of six chapters:in the first chapter, the history, definition and major characteristics of limited partnership are discussed. The second chapter is concerned with the laws on limited partnership in China, including laws in general as well as laws specifically on taxation. The third chapter mainly discusses the current situation of limited partnership enterprises in Shangcheng District, Hangzhou through exemplification and analysis. The fourth chapter conducts in-depth analysis and explore the essence of the issues from the perspectives of taxation policies, tax collection and national cooperation on taxation.In the fifth chapter, western experiences in the taxation of limited partnerships are introduced for us to learn. And finally, in the hope of helping limited partnerships to further develop and the government to make policies, the sixth chapter gives some suggestions concerning the taxation system of limited partnerships. |
