The Impacts Of The Unification Of Two Sets Of Enterprise Income Taxes On Both Domestic And Foreign-Funded Enterprises

The new Enterprise income law came into effect at January First 2008. The Income Tax Law of the People's Republic of China for Chinese-Foreign Equity Joint Ventures and the Income Tax Law of the People's Republic of China for Foreign Enterprises shall be annulled as of the same date. The unification of two sets of enterprise income tax is an important regulate about the policy of suction overseas investment. This tax rectify symbolizes a new step for our country to use the foreign capital, and will be more mature in the future.We must think twice about the connotation of attract the foreign investment, change our intention,connect the aim of use foreign capital and persist development. This aim requests us to be more sensitive about the economy impact after the alter of tax reformation. Observe the real effect, and regulate in time. This paper analyses the change of tax rate,the preferential treatment and,the normal for fee deduction and the tax burden. I Separated the domestic and foreign enterprise,in order to study the tax effect feedback and the influence about absorb the foreign investment. For large multinational corporation ,they take more care about the market condition than tax benefit about China, there will be no infection to them,But to many small foreign enterprise, there will be some influence because of the Unification of two sets of Enterprise Income Tax may have some,but we suppose the influence is not big at all.Anyway,the Unification make for our system of income tax,the equity of domestic company and foreign invested enterprise, build a equity compete condition,in accord with the tide of reformatory about the international tax system. Although the unification has some malpractice,but if we use right measure for the malpractice ,we can cut down the malpractice for us to burden, do some significance measure to build a better invest environment in order to make good use of the foreign investment and criterion the behavior of the foreign invest enterprise.