Research On Reform Of Enterprise Income Tax System

On March 16, 2007, the fifth conference of the tenth National People's Congress passed Enterprise Income Tax Law of the People's Republic of China, that was, New Enterprise Income Tax Law. New Enterprise Income Tax Law would put into effect on January 1, 2008. This was a big measure of tax reform in China and an important adjustment of macroeconomic policy and would affect economic and social development. The execution of New Enterprise Income Tax Law ended in the situation of two sets of Corporation Income Tax Law System, unified Enterprise Income Tax, and rectified and perfected the Old Enterprise Income Tax Law. Which effects would New Enterprise Income Tax Law make? Which shortages did New Enterprise Income Tax Law have? Basing on aims above, the article explored the reform of Enterprise Income Tax Law of our country.The article combined theory and practice. After introducing the theory of income tax system and the development of Enterprise Income Tax System of our country, the thesis put into the content of reform of New Enterprise Income Tax Law, proved the economic effects of New Enterprise Income Tax Law: improving fairness and competition; increasing investment of corporations; optimizing economic structure; enhancing economic growth. Basing on analysis of theory and overview of practice, the article advanced the perfect measures of New Enterprise Income Tax Law. The article included five parts, and the main content of each chapter was as follows:The first chapter was introduction. After advancing problems, this chapter induced and overviewed the product of income tax system at home and abroad and simultaneously introduced the structure and creative points.The second chapter was theory of Enterprise income tax system. This chapter first defined the Enterprise income tax, and then advanced theoretical foundation of Enterprise income tax. At last, the part explored theory of tax principle and theory of fairness tax. Theory of tax principle emphatically dealt with Wagner's theory of tax principle; theory of fairness tax mainly emphasized traverse fairness of tax.The third chapter was the development experience of Enterprise Income Tax System of our country. After introducing development and change of Enterprise Income Tax System of our country, this article analyzed the main differences of Enterprise Income Tax System at home and abroad and explored the existing problems of Old Enterprise Income Tax Law: there was repetition tax in Old Enterprise Income Tax Law; load of Enterprise Income Tax at home and abroad was unfair; tax preference policy was under demand of economic development.The forth chapter was content and effect of New Enterprise Income Tax Law. Firstly, this chapter introduced principles of New Enterprise Income Tax Law: uniform and standard; fairness and efficiency; leading of industrious policy; simplification of tax system and convenience of management. Secondly, this part explored the main content of New Enterprise Income Tax Law. At last, this chapter analyzed effect of New Enterprise Income Tax Law: effect of income growth; effect of corporation investment behavior; effect of economic structure; effect of social distribution and consumption; effect of macroeconomic increase; effect of avoid tax. Of all, effect of social distribution and consumption of New Enterprise Income Tax was the first creative point.The fifth chapter was perfecting measures of New Enterprise Income Tax Law. The article suggested that we should perfect New Enterprise Income Tax from the tax preference policy; anti-tax-avoidance rules; detailed rules of Enterprise Income Tax Law and several matching measures. When perfecting anti-tax-avoidance rules, this article advanced optimism measures according to anti-transferring-pricing; anti-foreign company-controlled; anti-capital-weaken; anti- tax treaty-disused. This was the second creative point of the article.