Evaluations And Countermeasures Of The New Enterprise Income Tax Law

Since reform and opening up, the differentiated corporate income tax system has played a positive role in attracting foreign investment and promoting economic development under the specific historical conditions. However, with the socialist market economic system being established and development, this unfair tax burden caused by the tax system highlight the growing contradictions. It not only made direct effect in the unequal tax burden between domestic corporate and foreign corporate, but also provided unfair opportunities for the different enterprises to develop, which had different income levels in the different regions. Especially since 2001 China attended to the WTO, foreign investment has fewer and fewer restrictions to access to China. The foreign-funded enterprises compete with domestic enterprises in more and more fields. If the foreign-funded enterprises continued to enjoy preferential policies, it was bound to go against the principle of fair competition in the market. In order to solve these problems, our government introduced a new Enterprise Income Tax Law in 2008, all of enterprises have the same policies. Through more than one year of actual operation, the weaknesses of the new enterprise income tax system were gradually appear. This thesis is carried out against the backdrop, the author make the combination methods of macro-and micro-analysis, normative analysis and empirical analysis and horizontal analysis and vertical analysis to analysis. Learning from the China's history of corporate income tax system, at first the author sum up the achievements of the new Enterprise Income Tax Law on the unified tax deduction standards, uniform tax rates, the construction of tax preferential policies and anti-avoidance system, and then analysis the limitations of nature of the new Enterprise Income Tax Law, focusing on analysis of its branches in non tax-related issues, pre-tax deduction of the specific standards and preferential taxation policies of clarity and rationality, anti-avoidance system operability issues exist, and then expand the use of tax theory. Combination of the current financial crisis in the international situation with China's specific national conditions, learning form the foreign tax reform, the author give the advices to further improve China's corporate income tax system.