New Corporate Income Tax Law's Impact Upon Foreign-founded Enterprises And Countermeasure

China's current dual income-tax structures have coexisted for more than 20 years, but this situation was changed in 2007. New Corporate Income Tax Law had been approved by the fifth session of The Standing Committee of the National People's Congress (NPC). This new law provides the domestic and foreign invested enterprises equitable and normative legal system besides the clearer, more public and more manipulabe legal environment.The purpose of this article is to explain the impact and countermeasure on foreign invested enterprises brought by this new law. At the very beginning, this article introduces the topic and background, recent situation and methodology of researches on income-tax etc. Then the author explains the details of difference and recent situation of these current dual income-tax structures besides the guidance and meaning of this reformation of income system. From macro and micro point of view, this article introduces the impact of this new law by analyzing and comparing. The macro part includes the whole burden, reinvest, industrial structure, direction of invest and capital flow, the micro part includes produce, management, income tax accountant and tax plan of enterprises. At the end of the article, author provides the countermeasure foreign invested enterprises should take towards the new income-tax law.According to impact and real case analysis, this article indicates that the new income tax law brings impact on foreign invested companies. Foreign invested enterprises should attach importance to the impact, adapt to the new income tax law. This article could be used as reference to guide foreign invested enterprises executing the new law.