A Thought On The Tax System Reform To Encourage The Development Of Non-State Enterprises And Its Demonstrative Analysis

With China's entering the World Trade Organization, the faster pace of economic globalization and the restructure of national economics, non-state enterprises are more and more important in maintaining the continual and fast development of national economics, meeting the need of the whole society, easing the pressure on employment and optimizing the economic structure etc.. Taxation is a significant means for accommodating economics, and the arrangement of the tax system and tax administration can influence the development of non-state enterprises greatly. In this thesis, with analysis of the development, the facing position and difficulties in tax-related issues of non-state enterprises in Zhongshan City, the writer points out that there are limitations in the active implementing tax system. For instance, there are deficiencies in design of the VAT, the Enterprise Income Tax and the Individual Income Tax, and the environment of tax legislation construction is yet to be improved. As a result, the investment capability of non-state enterprises has been limited and their investment enthusiasm has been affected. In order to encourage the development of non-state enterprises, using for reference of the experience of foreign countries' tax reform and within the framework of China's new round of tax system reform, the writer puts forward several suggestions on perfecting the tax policy.The thesis covers six parts.Part one is an introduction. It presents the significance of the study.Part two analyzes the development, the facing position and difficulties in tax-related issues of non-state enterprises in Zhongshan City. With this example, the writer further analyzes the relationship between the development of non-state enterprises and the tax system.Part three studies the limitations on the development of non-state enterprises under the active tax system.Part four presents implications of foreign tax system reform in the nearly twenty years and puts forward suggestions on tax reform to encourage the development of non-state enterprises.Part five makes further demonstrative analysis on how tax reform influences theinvestment decision of non-state enterprises. It is an example based on the general analysis.Part six draws a conclusion and puts forward the issues needed to be studied further.