On Legal Analysis Of Completing Preferential Policy Of Enterprise Income Tax

This paper analyzes the system of tax preferences in The Law of EnterpriseIncome Tax of the PRC, puts forward a number of existing problems in the processof enforcement, and provides a few approaches on how to further perfect thesystem of enterprise income tax preferences.The industries and projects with major support and under encourageddevelopment by the State are given income tax preference. The article firstlycategorizes the current systems of income tax preference from the functionalperspective, which is also the innovative point of this paper. The enterprise incometax preferences mainly include2types---for economic purposes and for socialpurposes. Apart from that, there are also the transitional type and the specializedtype. The tax preference referred to in The Law of Enterprise Income Tax of PRCmainly focuses on the one for economic purposes, which can further be dividedinto three kinds: Industry (or identity)-oriented preference, project (or function)-oriented preference and area-oriented preference. The management system of enterprise income tax preferences is by filing. There are relevant regulations ontaxpayers of their filing obligations. Also, there is follow-up inspection. Thelegislative technology of the enterprise income tax preferences is to further amendor limit the positive elements of tax debt.In addition, this paper deals with a few problems in the process of such lawenforcement, which include: the irrationality of standard setting of the enterpriseincome tax preferences, the ambiguity of the preferential conditions, thecontroversy of whether the enterprise income tax preferences conforms with TheAdministrative License Law of the PRC, whether the Principle of Trust Protectioncan be used in the enterprise income tax preferences, and whether the range of theenterprise income tax preferences is too wide or too narrow.Tax preference is a crucial means of control for government to guide theenterprises to achieve the economic, social and cultural goals. Therefore, to perfectthe system of enterprise income tax preferences is of vital importance. This articleputs forward several approaches to perfect the system of enterprise income taxpreference: a reasonable definition of the preferential range, an emphasis on theconcept of enterprise income tax preferences, a withdrawal mechanism of thesystem at the right time, and a clear set of regulations of enterprise income taxpreferences.