Study On The Comparison Of Tax Credit Between China And America For The Outbound Investment

Enterprise outbound investment is an important measure in participating of internationaldivision, using international resource to optimize industrial construction and enjoying thebenefit of economic globalization. In order to share the international capital resource,allcountries strengthen comparative advantage in the international competition, and adoptvarious kinds of policy measures to import the enterprise outbound investment, the tax creditis a kind of main form among them.Outbound investment has been made as one of plans and should be supported by the taxcredit. The current tax credit in China has made a large step compared with the last tax credit.However, there are still flaws when it encourages the outbound investment.In the aspect of encouraging outbound investment, each country makes tax neutral theory,which keeps capital flow internationally,as the basic principal. In the mean while, accordingto the difference of economic strenth and country strategy, each country adopt various foreigntax credit.Thereinto, American tax credit is comparative perfect. By comparing and analyzingChinese and American tax credit, to find out the differences and distance between them. Thenuse American tax credit for reference to improve the tax credit of China. This course shoudnot be sightless, but on the basement of tax justice,tax efficiency and the situation of country.To learn the advantages and get rid of its disadvandages. For how to ensure the improvementof the tax credit, here bring forward the settlement as supplement.Finally, improved tax credit, compared with the former, is preciser at the point of creditrange and limitation, and is more flexible on the indirect credit qualification. There areencouragement, as well as restrictment for the outbound investment. For the government, it iskind of protection fo its tax interest.