The Influence Of The Unification Of Two Sets Of Enterprise Income Tax On Introducing FDI In Hebei Province

Since reform and opening-up, the "super national treatment" of the tax preferential policies,which was granted foreign-invested enterprise, has become an important means of attracting foreign investment in China. According to reports, Nominal Tax Burden is15%, and Real Tax Burden which was much lower than the33%of the legal was11%. With the establishment and improvement of China’s socialist market economic system, unfairness of Coexistence of two sets of enterprise income tax has caused a series of problems. Coexistence of two sets of enterprise income tax led to unfair tax burden between domestic and foreign enterprise. The new Enterprise income law came into effect at January First2008.The Income Tax Law of the People’s Republic of China for Chinese-Foreign Equity Joint Ventures and the Income Tax Law of the People’s Republic of China for Foreign Enterprises shall be annulled as the same date.The unification of two sets of enterprise income tax is an important regulate about the policy of suction overseas investment. The unification of two sets of enterprise income tax has achieved "four unifications" which are the same tax law of domestic and foreign enterprises, unified and reduced the income tax rate of enterprises, unified and criterion approach and standard of tax deduction, unified tax preferential policies. Now, implementation of the new tax law has been four years, does the unification of two sets of enterprise income tax influence the economic development of Hebei province? Will it have a significant impact on foreign investment in Hebei market? Will the unification of two sets of enterprise income tax cause divestments of foreign tradesman? Whether it helps enhance the quality foreign investment in Hebei Province? Study of these problems has practical significance on examining and assessing foreign investment and optimizing their investment environment.This paper will take the contents and policy adjustment of the new enterprise income tax law for clues, and inspect the influence of attracting foreign capital after unification of two sets of enterprise income tax in Hebei Province. Firstly, this paper reviews the previous preferential policy of tax, and analysis the background of the" The merger of the two taxes " as well as the content of the new tax laws and the adjustment of preferential policy. Secondly, in terms of inflows of foreign capital, the investment of foreign capital, the major sectors of foreign investment and the source structure of foreign capital and so on. All of those demonstrate the influence of "unification of two sets of enterprise income tax" to Hebei Province in the field of introduction of foreign capital. Thirdly, when this paper makes the correlation analysis in the foreign income tax burden of foreign capital scale of Hebei Province, evaluates the role and contribution of unification of two sets of enterprise income tax to the introduction of foreign capital of Hebei Province objectively. Finally, in the above foundation in analyzing, this paper put forward the main thought about the of preferential policies of new tax of Hebei Province in introducing foreign capital.