Combination of Enterprise Income Tax is a key topic in China's current Tax Renovation. From it's progress, it is estimated the new policy will including:1. Combine Enterprise Income TaxIn order to create a relative fair market condition and meet the requirement by WTO, the new policy will abolish some tax priority on Foreing Investment Enterprise and adopt uniform policy among the whole contry.2. The future tax incentive policy will focus on indirect tax encouragement methord. In order to meet the requirement of China's industry encourage policy, the key purpose of tax incentive will be changed from region development priority to industry investment priority.It is obviously that this tax renovation must make some negative impact on Foreign Investment Enterprise, but tax incentive policy is not the key factor on overseas investment. China is still one of the most attractive country with more profitable future investment opportunities.Based on the analysis about the trend of China's tax renovation, Foreign Investment Enterprise must make a reasonable strategic planning for future development. |