Tax Trends In International And China Foreign Tax Reform

With the rapid development of science and technology, knowledge has become the main power of economic progress. And the World Economy presents an integration tendency, which not only increases the dependence on each other country's economy, but also brings up a new challenge on the taxation system and coordination of all the countries. Chinese economy is also facing such a problem when it mixes with the World Economy.The Income Tax Law of Foreign Enterprises in the People's Republic of China, which was passed in April, 1991, marked the preliminary foundation of our taxation involving foreign nationals. The administrative system has accelerated the development of our business relations with foreigners. In the past 20 years Chinese economy has achieved a lot, and the economic pluralism has become a characteristic of Chinese economy gradually. However, with China's economic involvement and the limitation of our current taxation system involving foreign nationals beccoming more obvious making it unfit for this changed tendency, we are in great need of reform on it.International taxation refers to the relation of levy and payment between all countries' governments and transnational tax payers, as well as the relation of transnational taxation apportioning between two or more than two countries exercising taxation power towards transnational taxpayers in international business. The- taxation involving foreign nationals in each country is the foundation of International taxation, which in tem is a reflection of taxation involving foreign nationals in terms of international relation, and is extention and development of such taxation. This article first analyses the globalization's requirement for the current administration of taxation involving foreign nationals, then concentrates on the core of international taxation administration: abolishing international dual taxation, signing an international taxation treaty, guarding against international evasion of taxes, as well as investments and trade of transnational companies. The anthor also raises some detailed assumptions of reform on the taxation system involving foreign nationals supporting external investments of our enterprises, strengthening the rax administration on E-business, and building up our own international tax administration agencies.