Study On Incentive Policy Of Income Tax For Overseas Direct Investment

Since 1990s, China applied overseas economic development strategy of"bringing in"and"out", which improved company's participation in overseas and expanded overseas investment's scale by implementing series of favorable tax policy. New company income tax law published in 2008 put aside some burden of corporate to some degree. Have this new law's clauses concerning company overseas investment been changed? How did law influence company investment scale? This paper will ask this question by mathematical way and methodical analysis.This paper's third section points out problems that exist in overseas investment contained by China's new corporate income tax by methodical analysis on characteristics of overseas investment in new corporate income tax, and then, analyze overseas investment's scale mathematically. By doing this, we find out that overseas investment's turning point in 2008, at the same time, further study change of FDI investment's scale, rule out possibility that screening out effect by FDI to company overseas investment lead to turning point.By applying same method, we rule out possibility that smooth increase in GDP is responsible for corporate overseas investment's turning point. The fourth section finds difference of overseas investment incentive policy between developed nation and developing nation in order to perfect China's overseas investment income tax incentive policy. The fifth section focuses on shortcoming existing in overseas investment incentive policy ruled by new company income tax law, issues there major principles that contain cost-revenue, popular-orientation and continuity-agility and provide regulation thinking.