The Consideration Of The Adjustment Of Chinese Preferential Tax Policy Concerning Foreign Parties

The preferential tax policy concerning foreign parties have very important meaning for promoting the reform and opening, pushing forward the progress of science, technology and modern socialistic construction. But along with the development of the economy, some existent questions have baffled the normal movement of the domestic economy. At the moment of the establishment of the new enterprises income tax law, the penman probe into the adjustment of preferential tax policy concerning foreign parties in order to find a way to improve the level of the using foreign capital and keep the development of national economy healthy.The preferential tax policy concerning foreign parties of China mainly formed in 1980's. It focused in eastern coastal areas. An multitiered opening pattern of special economic regions -- economic and technical development zone -- national coastal economic open zones– inland came into being. It tilted towards hi-tech industry, agriculture, forestry and breeding. And it is built of many forms such as turned down tax rate, tax concession at fixed term, purchase a domestic equipments investment to credit business income tax, back tax of reinvestment, accelerated depreciation, carry-over of losses and so on.Because of the progress of Chinese economic construction, the strategic center of economic developments moving toward west and the acceleration of the international economic integration, the preferential tax policy concerning foreign parties has become unadaptable to the new position.Such as,it tilted too much in district, causing the distribution of foreign capital to be out of balance gradually in the region of our country. It is short of the industry direction, causing the industrial structure distribution of foreign capital to be inconsequent. The form of the preferential tax policy is singular, counting agaist improving the quality of attracting capital.It is excessively in favour, influencing the normal development of the domestically-funded enterprise. The preferential tax policy covers with many areaes and many levels, easily causing the hole of management of taxation. The preferential tax policy is made of many governments,destroying the unification of the tax legal system.The existing problem has influenced the efficiency of using foreign capital to some extent,so that we need to carry on some adjustments to the preferential tax policy .First of all, the establishment of the preferential tax policy should follow a fair principle, efficient principle, citizen treatment principle and progressive principle.Secondly, we should strongly push forward the enterprises income tax consolidation of the domestically-funded enterprise and the overseas-funded enterprise to build a fair competition environment. One thing need to be nailed down, the consolidation isn't a cancel to the preferential tax policy. Reservation is necessary, because of the normative and specifically preferential tax policy is a strong complement to the unitive tax system. And it should be outstanding in leading and regulating the economies. We should establish a specific industrial preferential tax policy to encourage the foreign capital hurling to the first industry and the third industry and improve the quality of the foreign capital hurling to the second industry. We should adjust the region trend of the tilt to encourage the foreign capital hurling to the midland and the west region and make great effort to carry out the strategic target of the balanceable development in the district. After the adjustment, the new tax law includes the following preferential policy: promoting the technical innovation and the progress with science and technology, encouraging infrastructure construction, encouraging the development of agriculture, the environmental protection and energy saving, supporting safe production, Promoting public-spirited business ,looking after minority community and particular tax concession of the natural disaster etc.Again, we should improve the preferential ways with enlarging the strength of using indirect preferential policy such as accelerated depreciation, postponed ratepaying, deducting fees, public finance subsidy and withdraw particular reserve.For giving full play to the function of the preferential tax policy concerning foreign parties, it should also be assisted with some related integrations.One of the integrations is to make the preferential tax policy normative and strengthen the legalization management.Two of the integrations is to induct tax expenditure system to improve the tangible benefit of the preferential tax policy.Three of the integrations is to enlarge the strength of the financial transfer payment for Insuring the preferential duties falls solid place.Four of the integrations is to change idea and improve the investment environment.Five of the integrations is to fight for signing tax sparing agreement with the government of capital-exporting country.One of the new meaning of the discourse is that it demonstrate the industrial pilot of the new enterprises income tax law and summarize the new industrial policy. The other innovation is that it discourses upon the related integrations of the preferential tax policy to make the adjustment more comprehensive.