Study On The Problem In China's Present Enterprise Income Tax System And Its Countermeasures

With the development of China's economic structural reform and the economic globalization, the enlargement of regional unbalance of economic development and income difference among economic main bodies, and a series of challenges enterprises are facing after entry to WTO, the present income tax system cannot meet the requirements of the economic development. On the basis of summarizing the relevant research results, this thesis firstly induces the basic theory on enterprise income tax system. Secondly, it compares the differences between China and foreign countries' enterprise, income tax system from the aspects of tax system, model, definition of taxpayers' duties, tax deadline, payable income tax, preferential tax policy, double taxation, taxable object, tax rate, etc. Thirdly, it points out the experience and enlightenment of foreign enterprise income tax systems. Fourthly, it explicates the following main problems existing in the present system: co-existence of two tax systems for domestic enterprises and foreign-funded enterprises, irrational preferential tax policies, relatively high tax rate, disorder in defining tax rights, blind point existing in the enterprise group income tax system and so on. Fifthly, it analyzes a series of unfavorable influences caused by the problem: unfair market competition, damage to the development of enterprise group, low efficiency in taxation, heavy loss of tax income. Sixthly, it points out the direction for the reform of the present system: unify the laws on enterprise income tax, clarify the duties of taxpayers, determine appropriate tax rate, unify the tax base, set up relatively unified system of preferential tax policies, set up the system of sharing tax revenue between the central and local authorities. Finally, it puts forward a series of countermeasures to China's enterprise income tax system.