The Adjustment & Perfection Of China's Tax Policy On International Investment

The economic globalization is becoming the inevitable trend of world economic development. More and more countries are incorporating into economic globalization and the international economy coordinations between various countries are strengthening continuously as well.Meanwhile,the international political economic situation is also taking place the deep variety. With the opening-up of economy and the reformation of the market economy system in the past more than 20 years, china have achieved accelerative and strong economic growth, and the quality of investment environment has been improved significantly and essentially in the process as well. However, the china's development of international investment and actual performance of implement on corresponding revenue policy proclaim that china's current revenue policy of international investment has couldn't meet the requirement for the nowaday economic development. These revenue policies have affected the improvement of total quality and benefits of china's international investment, and reflect some negative effects as well.For instance, firstly, the gap of the tax burden between foreign enterprises and domestic enterprises is tremendous affected the improvement of total economic quality and benefits, so it is impossible to realize the fair competition among various taxpayer and accelerate race economy. Secondly, due to the development scale and speed of overseas investment lags behind the level of utilizing foreign investment, not only the formation of china's virtuous circulation of investing inward and investing outward has been limited, but also the revenue policy of china's international investment could not play efficiently its due role on the guiding function on industrial and regional orientation and match closely the china's industry policy. As a result it is inevitable to hinder the harmonious development of china's district economy.Therefore,we should urgently regard sticking up for the economic safe and economic benefits in our country and analysising objectively but reasonably the positive or negative effect on international investment as the foundation .And china must keep to the international tradition and the basic principle of WTO and adjust or perfect china's revenue policy of international investment. We will make great effort to establish a the desirable tax system that is unified, open, fair and high-efficient and be fit for the socialist market economy system.Moreover, china should adhere to the foreign revenue equality principle and the neutralization of the capital input principle. We should stick to the national policy of opening up, implement an opening up strategy of mutually benefits, and participate in international economic and technological cooperation and competition with a broader scope, in a wider range and at a higher level. So we should endeavor to generalize foreign enterprise and domestic enterprises VAT and make various kinds investor enjoy national treatment and compete fairly. At the same time, enhancing obviously favorable degree of revenue policy to china's overseas investment would encourage domestic investor to take part in positively foreign investment and promote the stable and fast growth of china's overseas investment. Furthermore , we should enhanced remarkably the guiding function on industrial and regional orientation of china's revenue policy of international investment ,and standardize and optimize the administration of preferential revenue policy as well. It is significant for us to better promote optimizing and upgrading china's economic structure and improve efficiently the quality & benefits of china's international investment by means make use of well international resources and market. Ultimately, china will achieve the overall, harmonious and sustainable economic development.