Industry-oriented Tax Policy Based On Regional Development

Since taking the reform and open-door policy , China has attracted a good number of foreign direct investment and gained great success . To some extent the remarkable progress on introducing FDI in twenty years had a direct relationship with the steady improvement in law system and policy environment of introducing FDI. Introducing FDI actively and enlarging the fields in using FDI became an important part in Chinese economic development strategy. As a part of foreign policies , tax policy plays a great role in attracting foreign capital. Therefore, generalizing the experiences in drafting and executing tax policy is significant to utilize FDI effectively and promote economic sustainable and harmonious development.Summarizing the tax policy of attracting FDI in China, we can divide them simply into two orientations : tax policy oriented to the fixed areas or locations and tax policy oriented to fixed industries. As for the two orientations , the problem is which to choose, whether to combine them , how to integrate the two orientations and the route of combination and the mechanism to realize. All these questions will be found in this thesis, and some suggestions in tax policy will be put forward.Considering the goals of adjustment of the industrial structure and reduction of region disparities, we put forward industry-oriented tax policy based on regional development. Leading industry will be expounded as the route of combining the industry orientation and region orientation, so as to accelerate the adjustment of the industrial structure and the regional development in harmony. We also make some suggestions that an independent, centralized and unified tax preferential law should come on . And this law should give some freedom and rights to regional governments for their self-determination.