Foreign Direct Investment In The Effectiveness Of Tax Policy Studies,

With economy globalization becoming the trend of era, tax policy has had more important influence upon foreign direct investment than before. After more than two decades development, China has achieved great success in using foreign capital. Tax policy has played an important role in this course, however, it also has produced side effect on the national economy. So it is necessary to research the validity of FDI tax policies for reforming the current tax policies for foreign investment.The first of all is introduction, which explains the purpose of research, significance and research status and development trend inside and outside of China.The second part of this paper looks through the enactment of FDI tax policies and expounds the current main tax incentive methods, including tax exemption, preferential tax rates, preferential tax rebate for re-investment, investment tax credit for invest, accelerated depreciation, and loss carryover or carry back. Then, this chapter stresses the emphasis on theoretical analyzing the factors which influence the validity of the income tax incentive policies for FDI.The third part of this paper analyzes the validity of FDI tax policy during actual implement of the policies.The last part is conclusion, which summarizes the outcome briefly, that FDI tax policy of China has effect on FDI. Concretely, different tax incentive policies not only have different incentive effect on FDI, but also interact to each other. In practice, current FDI tax policies of China have obviously "non-validity" and "uncertain effect".