The Comparative Research Of The Favorable Tax Policy In Attracting Foreign Investments Of China And Kazakhstan

Accompanied by a wave of economic globalization, international economic relations between countries becoming more close, and relationship in the taxation also becomes more complicated. And developing countries, especially countries with transitional economies in order to promote their own economic development, often formulate and implement a broad range of preferential policies, among them preferential tax policies for foreign investors play an important role.China, since the start of reforms and opening up, faces the outside world no longer as a closed country, but exist in more and more interconnected, dependent and interacted world. In such internal and external environment, China has carried out an active and positive tax policy, and gradually implemented a series of foreign tax preferences. The implementation of these preferential policies has played an active role in encouraging foreign investment and development of foreign economic relations. In a narrow sense, these policies include low tax rate for foreign investment enterprises, the establishment of Free Trade Zones; in a broad sense, they include financial repay of local governments and low-cost forms of preferential treatment given to foreign investorsAt the same time, it is noteworthy that China's preferential tax policy is constantly developing, from special turnover tax for foreign investments to unified income tax policy for foreign funded enterprises. In that case, arise question is it necessary for China to carry out special preferential policies for foreign investments? What is the future tendecy of foreign investment tax policy? What kind exact relationship between attracting foreign investment and preferential tax exist? Most importantly, whether it is possible through the comparison of China's preferential tax policy since the reforms and opening-up, use its experience for also transitional country Kazakhstan.This paper studies tax incentives to attract foreign investment and taking the basic theory to observe and study preferential tax policies and practice of the developing countries, especially countries in transition, summes up features of tax policy for foreign investments of China and Kazakhstan, its development and impact. Further compare two countries policy, through China's experience reflect gains and losses of Kazakhstan's foreign tax policy and get some enlightment.In short, how to correctly handle the preferential tax policies to attract foreign investment and the relationship between the development and implementation of effective tax policy, has become a serious challenge for the developing countries with of economic globalization. Therefore, through a comparative study, hope that China's practical experience and results can be referred to Kazakhstan, and to use the advantage in this area for better implementation of reforms.