An Analysis Of The Effect Of Tax Preference To Foreign Direct Investment In China

In the beginning of reform and opening-up, China exchanged tax preference for foreign direct investment. That is to say, China fetched in foreign direct investment by preferential tax policies. With the evolution of tax system, China gradually formed the tax system of foreign direct investment. It has been proved by practice that the tax preference policy played an important role in fetching in foreign direct investment, promoting the development of industrial and region economy, importing of foreign advanced technologies, readjusting economics, and so on. But China neglected assessment on the effect of tax preference. So it is significant to evaluate the effect of tax preference for enhancing the efficiency of the tax preference, solving the existent problems of tax preference, fetching in more foreign direct investment.This paper is going to analysis the effect of tax preference to foreign direct investment in china. Firstly, based on the basic theory it compared the tax preference policy between China and foreign countries. Then it evaluated the effect of tax preference to foreign direct investment in an all-around way. And it gave some advice on the basis of national conditions of China and the world-wide advisable experience.