A Study On The Basic Analysis And Reform Approach Of Foreign-Enterprise-Related Tax System Of Our Country

The economic globalization has become the trend of the time, while international capital flows became the main reflection. As the acceleration of capital flows among nations, the governments, especially those of developing countries, never forget to provide all kinds of preferential tax conditions for foreign direct investment by making use of taxation tools to attract foreign capital, and strengthen the comparative advantages among the international competition. Since the late of 1970s, China has implemented the basic policy of reform and opening to the outside, providing all-round preferential tax conditions for FDI to enhance the growth of economy. This policy was formed on the basis of national situation of the day, and was catering for the strategy of opening to the outside.After more than two decades of reform and opening to the outside, the economy in the country has been improved profoundly; the overall capacity also has been further promoted. However, with the establishment and continuous consummation of market economic system, the current foreign-enterprise-related tax system of our country has shown a great deal of negative effects, and has hindered the further improvement of our national industries and technology, which not only affects the fair and effective competition environment for domestic and foreign-owned enterprises, but also results in the drain of tax revenue. Especially, with the end of 5 years'transition after entering into WTO, domestic market would be open to the outside world completely, integrate with the world market completely, the limits to foreign capital would be abolished, domestic enterprises are confronted with the problem of how to compete with foreign enterprises, both the domestic and foreign environment which the current foreign-enterprise-related tax system of our country depends on has significantly changed.Therefore, the task of top priority is to consummate the current foreign-enterprise-related tax system of our country. A great many experts have extensively studied the foreign-enterprise-related tax system of our country, there are mainly two focuses: One is the sensitiveness analysis of FDI to tax preference, the other is the discussion about reform and adjustment of preferential foreign-enterprise-related tax system. The domestic academic circle has proposed a series of suggestion, In particularly, taking consideration of the principle of national treatment in WTO and the domestic and foreign environment. One idea shows that the government should cancel the preferential tax policies, and establish fair and equal tax system; another believes that preferential tax policies should be remained, and high efficiency should be established in the system.Be based on the actual situation, this paper analyzes the foreign-enterprise-related tax system all-sided, objectively evaluates the inevitability, effect and limitation of our preferential tax policies, and discusses the principle and direction of the reform of the foreign-enterprise-related tax system, by learning from the experience of other countries, which is this paper's primary purpose.This paper include four parts, the first part is the summarization of theoretical study on foreign-enterprise-related tax; the second one introduces the formation, development and basic content of our foreign-enterprise-related tax system; the third part is the analysis of the causes, existing problems and socioeconomic effect of the foreign-enterprise-related tax system; the last part discusses the principle and direction of the reform of the foreign-enterprise-related tax system, and proposes advice about the reform or adjustment of the main categories of taxes.