Research On The Relationship Of The Chinese Tax Preference Policy And FDI

After China enter into the WTO, the tax preference policy of FDI, which has been lasting more than twenty years, has been pay to attention .20 years ago, China has just carried out the reform and opening policy, and the economy development face the shortage of investment and foreign exchange. China carried out the tax preference policy of FDI. In 1994 China reformed its tax system, which would change the different tax policies between the local enterprise and the foreign enterprise into the same. Because of the ill effect of the finance crisis of the Southeast, China delayed the plan.The article tries to study how change the effect of tax preference policy on China economy development. In this article the tax preference policy is just limited in the foreign enterprise income tax.The article use the models to study.In the course of study the effect of the tax preference policy on the economy, the tax model of new classical investment theory, the Hadman model and the tax planning model are brought in, the tax model of new classical investment theory analyzes the effect in the view of macro economy, and the Hadman model in the view of micro economy. The tax planning model analyzes the reason why the developing country use the tax preference policy to attract the FDI in the view of the competition.In the course of analyzing the current situation and the effective of Chinese FDI tax preference policy, the article describes the issuing tax right and the method of the tax preference.In the aspect of the effectiveness of the tax preference policy,the article analyses it by there ways. First, the tax preference policy had a large effect on the FDI. As the economy developed, the market capacity, investment environment, and the infrastructure had also an obvious effect. Second, Chinese focus on the east area, which lead to the FDI focus on the east area, and form a sound economy circle, but the middle and the west area faces a decreasing trend. The economy has an unequal development. Third, China carry out a popular tax preference policy to the...