Wto Membership For China's Foreign-related Preferential Tax Policies And Measures

After China's entry into the WTO, the accelerating process of globalization of trade and investment has drastically changed the relationship between domestic tax system and foreign ones. Many current polices in foreign-related taxation field face challenges and hence,need to be adjusted. Under this circumstance, how to effectively protect China's interests and sovereignty is one urgent problem to consider. Because of the importance of income tax in the tax regime, this essay mainly concerns the income tax preferences in foreign-related business. The aim of writing the essay is to find out the counter measures to those challenges.This essay consists of three sections. The first section provides a general picture of current foreign-related taxation and discusses the affects of applying tax preferences as well as the necessity of its continual existence. The second section is the main body of this essay. It analyzes the effects the rules of WTO have put on current foreign-related tax preferences. After introducing several important articles of WTO, the author analyzes the effects of them from the angles of legislation and economy. After analyzing the influence of WTO, the author also scrutinizes the opinion of OECD and does some study. In the third section, the author brings out some counteractions to those effects, which include both macro and micro actions. When a rational investor evaluates a project, tax preference is not the most important factor. He thinks a lot on the social environment, market potential, consumers' saving rate, etc. Therefore, at the time of discussing the adjustment of foreign-related tax preferences, we must perfect the investment environment. This is just the supplement opinion of this thesis.