China's Preferential Policies On Corporate Income Tax

Under the public financial system, as a result of the market malfunction question existence, the tax revenue preferential benefit becomes the tax revenue regulation the important method. The practice proved that, the tax revenue preferential benefit in the promotion economy stable development, the resources optimization disposition, the industrial structure adjustment, the opening to the outside world attraction foreign capital aspect affects obviously.In 1994 in the tax system reform process, for the adaptation economic restructuring and the opening to the outside world need, our country has implemented two sets of tax laws to in overseas-funded enterprise, and this has played the vital role regarding the maintenance tax system relative stability and the continuity. But, along with our country market economy system consummation and the opening to the outside world deepening, as well as joins the new request which WTO brings, two set of tax system deep Tibet's contradiction and the question expose gradually. Among them, because of the tax burden which the present in overseas-funded enterprise income tax revenue preferential policy difference oversized causes is unfair becomes the question which urgently waits to be solved. "After two law merges", how faced with further attracts the foreign capital, how adjusts the income tax revenue preferential benefit to adapt questions and so on new enterprise obtained tax law to be able to be more prominent, how adjusts consummates our country's enterprise income tax preferential policy, after causes it even more to adapt our country two law merges the new tax revenue environment suspends the question which urgently awaits in front of us to be solved.In the present paper research, we first began from the tax revenue preferential benefit basic theory, to analyze the theory origin which the tax revenue preferential benefit produced, elaborated and has limited the tax revenue system, the tax revenue preferential benefit connotation in detail, as well as the tax revenue preferential benefit produced necessity, function mechanism (characteristic, function, classification) and so on. Next, through unifies the Western finance economic theoretical analysis our country income tax revenue preferential benefit using the econometrics analysis method the effect (plus and minus two aspects): To fair and efficiency influence. Among them, the key analysis income tax revenue preferential benefit to the efficiency the influence, separately from to invests, the employment, the social welfare, the attraction foreign capital four angles considered. Through the analysis, we thought the income tax revenue preferential benefit the execution, inevitably certain negative influence which to fair, the efficiency brings, has affected the market mechanism function display, but regardless of is the experience analyzes or the real diagnosis analyzes us all to draw the consistent conclusion: Reasonable, the moderate income tax revenue preferential policy implemented may the enormous promotion economic output grow, the readjustment of the economic structure, the attraction foreign capital, enhances the social welfare.Once more, the comparative analysis our country income tax revenue preferential benefit and the overseas income tax revenue preferential policy difference, the analysis advantages, propose to our country income tax revenue preferential benefit adjustment perfect policy suggestion. Finally, analyzes our country income tax revenue preferential policy existence the question, pointed out our country present income tax revenue preferential benefit method sole, the goal is not clear about, the management system not perfectly and so on the questions, unifies the principle, the stability and the moderate adjustment according to the neutrality and the regulation unifies the principle, the decentralization and the centralization unifies the principle to put forward our country income tax system adjustment perfect proposal.