Controlled Foreign Company Legisl Ation Comparison And Reference

With the development of global economic integration, transnational capital in the international market and the flow becomes more and more frequent, from country to country economic competition has become more fierce. In this context, countries in order to attract overseas investment capital, promote national economic prosperity and development, have taken various measures and means, preferential tax policy is one of the important aspects. In countries using the preferential tax policies to attract foreign capital and at the same time, also for multinational enterprises in the implementation of foreign investment tax planning to provide the opportunity, in which a dominant strategy is established in tax havens controlled foreign company, and through the use of delay in payment mechanisms to circumvent their tax laws applicable. In order to regulate this avoidance behavior, avoid national tax base erosion, the United States in1962founded the controlled foreign company system, then Germany, Canada, Japan, France, the UK, New Zealand and other countries have developed their own controlled foreign company, after years of development, the state of the controlled foreign company system has been quite perfect. Since the implementation of going out" strategy of economic development, China’s overseas investment in terms of quantity and size have been greatly developed, but at the same time, our country taxpayer using controlled foreign company tax avoidance phenomenon has become more and more serious. In view of this, our country according to the practice in most countries, the new" enterprise income tax law of the people’s Republic of China" and the" Regulations" also introduced a controlled foreign company system, but the provisions of a relatively simple, principle, completeness, science is still insufficient. This paper firstly controlled foreign company legislation for comparative analysis, then our current controlled foreign company legislation, draws lessons from the foreign legislative experience, and according to the actual situation of our country, put forward some suggestions on improving the. This paper is divided into four parts:The first chapter of controlled foreign company legislation, including the legislative background, purpose, theoretical basis and main content.The second chapter comparative analysis of controlled foreign company legislation contents, mainly analyzed controlled "decision criteria; tax avoidance taxable income determination; determination method; calculation of income, merge and loss processing; avoid international overlap taxation regulations; exemption regulations and other controlled foreign company legislation contents.The third chapter analyzes our country controlled foreign company legislation, including our country controlled foreign company legislation main content and defects.In the fourth chapter, elaborates our country controlled foreign company legislation to perfect on the foundation of the necessity, legislative experience from other countries, to our country controlled foreign company legislation and put forward some suggestions.