The Thinking On Corporate Income Tax Incentives,from Perspective Of Law

When commencing the policy of reform and opening-up, in order to tackling the capital deficit and the improvement on management capability and technology backwardness, China has promulgated and implemented a series of laws and regulations, to construct a unique corporate income tax regulation with two separate systems, by which means the foreign investment was granted by greater tax incentives and it turned out such incentives played significant role in attracting foreign investment. With the constant deepening of the reform, the distinctive tax system enlarged the unfair competitiveness in China and the negative impact became visible gradually. Under such circumstance, in 2007, on the fifth meeting of the Tenth National People's Congress,'Corporate Income Tax Law'passed, and the major changes including the unification of corporate income tax system, and the adjustment on the taxpayers profile, tax rates, tax incentives and tax administration, which indicates that China corporate income tax system is improved and better established. It's critical to unify the previous distinctive tax systems and be regarded as a millstone on how to improve the quality of foreign investment and optimize the industrial structure. But there are still challenges to be faced, such as the better management of income tax incentives on foreign investment, and the supportive sub-regulation building up etc. In this thesis, the research on the Income Tax Incentives of Foreign Investment is constituted by Seven Chapters, the author focuses on analyzing the challenges related to the incentive policy and addressing the suggestion and direction of solving exist issues:The Introduction Chapter and the first Chapter are to introduce the background and the meaning point of this research: China economy development along with the implementation of new Tax Law are the general social background for this research; then followed by the relevant analysis on connection between tax incentive policy and foreign investment, author's opinion indicates that under specific conditions, tax incentives do play important role on attracting investment and the quality and utilization of foreign investment can be effectively improved by optimizing the incentive policy.The Second and Third Chapters are the analysis on the effect of tax incentives on foreign investment. Author regards incentive policy as important factor to guide the foreign investment not only in quantity but also in structure wise. Then author reviews and makes comparison on tax incentives amid different countries and regions, and summarize the points of potential reference.In the Fourth and Fifth Chapters, author reviews the development and restructure of China Tax Incentive Regulation for Foreign Investment in the past decades, and analyze the limitation and deficiency of the regulation in-force. Author then raises the suggestion and direction to remove the hurdles, and modification and improvement shall be made at least but not limited in follows aspects: Tax Incentive Regulation, The Administration on Incentives, Optimization of supportive sub-regulations and the building-up of harmonious relationship between enterprises and governors.The final Chapter is the conclusion of this thesis.