Joining The Wto And China's Enterprise Income Tax System Reform

We'll enjoy the right of muti-border commerce system frame,at the same time,we must fulfil our abligation since we enter WTO.Along with we cut down our custom,our enterprises will confront the globle market directly and they will compete with all corporations including many multinational ones. It requests that the corporation tax system which connect with productions closely must adapt to the rules of WTO.Accordingly,it'll be benefitial to fair competions among all enterprises.The optimize tax structure must give attention to both fairness and efficiency.In our country,the tax structure which is occupied with indirect tax must be changed.We should establish the double-main tax structure that is the trend of our tax system building and developing. However,our active incom tax system isn't normative in character.Including that some items aren't accord with the rules of marketing economy and WTO. l)The articals of limiting to foreign capital enterprises are not committed to COUNTRY TRAETMENT principle. 2)The status of two income tax systems is not accort with FAIR COMPETITION priciple. 3)The exitence of many namative file is not accout with TRANSPRENCE pinciple,ect.Comparing our tax system with those of other governments ,we can conclude that in despite of the low total tax burden,the scope of our taxpayer isn't transparent , the tax base designing is onefold and thepolicy of tax peference is non-normative.This limited the fair competition among corporations, so our corcoration income tax syetem must be reformed now.Reforming should include four aspects: 1)The new laws should be passed by The National People's Congress of The People's Republic of China or its standing committee.It would be entity law and had better be called Corporation Income Tax.2)Confirming revenue should embody the trend of monerate seperating and structural tax reducing.It should embody the request of administrating tax by low and normating tax system.It should embody the requst of effiency and predigestion.3)In the tax rate designing,we should keep continuity and predicting of the policy and exert its action that it should be.4)The goal of tax preference should be unified with production policy.And the measure of tax preference should diversficate the way of accommodation which means to enhance indirect accommodation.We must unit the tax preference policy to domestic and foreign capital corporation ,each area corcopration,all kinks of ones.Entering WTO,is not only the necessary of Chinese development but also the necessary of global economic increasing.More practice proved that our corporation income tax system has many inelasticity with the rules of market economy and WTO not only in designing but also in practising. Reforming our active corporation income tax system request that it should be accommodated not only to the articles of WTO but alsoto country production policy.It should benefite to not noly fair ratepaying and competition but also strength collection and orgnizing revenue. Considering all the things discussed above, We can conclude that all the things we can do is refoming our active corporation income tax system,so we can accommodate the new economic position,and we can exert the tax function better.