Discussion On The Unification Of Income Tax Laws On Foreign Investment Enterprises And Domestic Investment Enterprises

The unification of the domestic business income tax and the foreign fundedBusiness Income Tax has been considered and talked over for many years in China.Upon to now a basic concept on the unification has been reached to some extent,There are many differences between income tax for domestic enterprises and incometax for enterprises with enterprises, To some extent, these differences attract foreigninvestment enterprises and make great progress in the economic development of ourcountry,Nowadays the enterprise income tax system which divergence from the faircompetition foundation required by WTO put The domestic investment enterprisesinto unfavorable position and counterwork the development of our country. Thearticle attempts to analyze differences between the domestic business income tax andthe foreign funded business income tax, as well as some problems in the consolidationfrom some basic aspects such as taxpayers, tax rates, deductions before taxation andtax preference, Nowadays, it is needful for fair competition among the domestic andthe foreign to unify two sets of income tax law. The unification of income tax laws onforeign investment enterprises and domestic investment must conform to theadvantage of country. The article advances the standpoint of policy on the unificationof income tax laws on foreign investment enterprises and domestic investment. Butthe reform of income tax law is very important. It will make great influence on thedevelopment of our country's economies and community. The reform of income taxlaw must be performed by order and opportunity in order to reduce the risk andnegative effect.