The Status Of The Legal System Of China's Corporate Income Tax And The Direction Of Development

Corporate income tax which is a common tax category levied by different government in almost every country has most important state in the tax category. As China entered into the WTO, it is meaningful for the development of corporate in China and investment of the foreign capital. Before China entered into the WTO, the domestic company has more advantages than the foreign invested company in the aspect of market entry. But now more and more limitation to the foreign enterprises is cancelled, such as the foreign exchange balance, export requirement, etc. Under such circumstances, the bad effort of"two ways for corporate tax"is more evidently, the different income tax policy on the domestic company and foreign invested company definitely need to change, as a result the relevant research on the income tax is very important.This article will carry on the analysis on the present Chinese income tax policy and will provide the relevant suggestions to the existing problems. This article has three sections.The first section will focus on the analysis relating to the existing corporate income tax policy. First of all, the author analyzes the legislation of corporate tax in China---the phenomenon of"two ways for corporate tax", Then from two aspects about the tax levy and the foundation of tax to compare the income tax policy on the domestic corporation and the foreign invested corporation, and point out its relevant problems by given 12 examples. At last, the author from the aspect of international tax to point out the disadvantage of this tax policy domestic company once more.The second section will focus on the future development trends on the corporate income tax policy, and meanwhile provides the relevant suggestions. In this part, the author will stress the necessity and importance of uniting the domestic corporate and foreign invested corporate income tax policy, and give the detailed ideas about how to realize"the united corporate income tax"policy from eight aspects.The third part is the conclusion, the author think"the united corporate income tax"could realized by two steps. The fist step is to lower the domestic corporation income tax rate to 25%, then make the relevant amendment of tax legislation to the foreign...