International Taxation Competition And The Adjustment Of China's Foreigner-Concerned Policy

Since 1990's, the accelerated development of economic globalization has have a great impact on the world economy, and the surroundings of the international economy has have profound reforms. The process of economic globalization not only changes the features of the international economy in depth, but also brings opportunities and risks to every country. On the condition of economic globalization, international trade and capital flow increase rapidly, while foreign capital has been contested within many countries for their own interests. As taxation is concerned, tremendous influence and challenges toward each nation's taxation has been drawn form this wave, as well as the taxation competition, cooperation and coordination between the countries around the world.As the paces of the economic globalization become even faster, our country's foreigner-concerned taxation policy should be adjusted accordingly. Although the current foreigner-concerned taxation policy has attracted many foreign investments, and been successful for a long period of time, it falls behind the country's macro-economic development now. The new "Enterprise Income Tax Law" has been implemented on January 1st, 2008. It made the unification of the domestic-founded enterprises' income tax and the foreign-funded enterprises' come true. It united and appropriated to reduce the corporate income tax rate, united and standardized the methods of pre-tax deduction standards, untied tax preferential policies to set up an the new tax system "industry-based preferences, supplemented by regional preferences".Given the above facts, it's necessary for us to study on the international taxation competition and foreigner-concerned taxation policy. This thesis will focus on how to analyze, adjust and optimize our country's foreigner-concerned taxation policy.The thesis consists of five parts.The introduction of the thesis briefly presents the research aim, interest, literature review, structure and method of it.Chapter One illustrates the related comments about economic globalization and international taxation. Through the introduction of their basic comments, it leads to the international taxation competition theory, classic model and each country's foreigner-concerned policy.Chapter Two illustrates our country's current foreigner-concerned policy. Through its introduction, it analyzes the great influence on attracting the foreign investment and improving the tax revenue. Chapter two also introduces the new foreigner-concerned policy after the implementation of new "Enterprise Income Tax Law" and points out some problems of it.The main content about Chapter Three is about learning from the international experience. Through the introduction about two rich countries' foreigner-concerned policy of Southeast Asia country-Korea and Singapore, it summarizes the features of them, and we hope it can be helpful for making our country's foreigner-concerned policy.Chapter Four is some thinking about China's foreigner-concerned policy. According to the principles formulating policy and the comparison between the new policies and the old ones, finally it gives some suggestions on measures on our foreigner-concerned policy's comprehensive reform combined with the problems of the new foreigner-concerned policy.