International Tax Competition: Tax Competition On The Direct Impact Of Fdi

Research has shown that the competition of international taxation, as the production, the process and the result of the integration of global economy, attracts the FDI with tax incentive to promote economic development, industrial restricting and to increase employment; the competition of international taxation from freedom to equilibrium constantly makes innovation to the competition situation and pursues the scarce resources—the fluid tax base. The Tax Preference of China has indeed had great influence on the FDI, and has made remarkable contribution to Chinese economic development, making China one of the most attracting states in the world With the development of the integration of global economy, the form of the international capital circulation changed and the proportions of FDI and FPI varied. The degree of economic marketization in China has increased and the industry is developing into a higher level. In addition, the externality of international taxation competition has changed. Our policy of taxation to attract FDI is accordingly modified. It is necessary to make a change.