Study On The Legal System Of Tax Preference Of Corporate Income Tax

Complying with the reform of economic development, the income tax law of enterprise of the PRC has promulgated. This indicated the unification of domestic and foreign enterprise income tax. The new law set the chapter of tax preference in particular. And the new law has formed a new pattern of an industry-based preferential policy, supplemented by regional preference. However the legal system of tax preference of corporate income tax is not perfect and existing some problems inevitably. With the gradual upgrading of industrial structure and the acceleration of the process of world economic integration, especially after the suffering of the global economic crisis, the legal system of tax preference of corporate income tax will be forced with many new problems and needed further improvement. In this case, it is significant to study on the legal system of tax preference of corporate income tax, in order to eliminate the drawbacks as far as possible and to establish a sound legal system.The basic principle of economic law is the basis of the article. It carries on a further research and discussion on the legal system of tax preference of corporate income tax combining theory with practice. The paper is composed of four chapters.The first chapter is the general analysis of the legal system of tax preference of corporate income tax in our country. It explains the basic connotation of the legal system of tax preference and the relationship with the development of the enterprise. It focuses on the importance of the legal system of tax preference to the development of the enterprise.The second chapter deeply describes the theoretical basis of the legal system of tax preference of corporate income tax. On the one hand, it explains the preferential enterprise income tax is in line with the idea of economic law--social standard, social justice and social harmony. Accordingly, it analyzes its legitimacy. On the other hand, starting from the basic principle of the tax preference of corporate income tax, macro-control policy is positioned as subsidiary principle. The article points out that the corporate income tax should take principle of tax fairness and efficiency into account. Besides, it introduces the principle of proportionality as a yardstick, in order to achieve the rationality of the legal system of tax preference.The third chapter comprehensively analyzes the process of the legal system of tax preference of corporate income tax. It summarizes the current preferential enterprise income tax law system and makes evaluations. Then, the chapter points out the existing drawbacks of current preferential enterprise income tax law system:first, the legislation of enterprise tax preferential legal system is not perfect. Second, there still exists some problems in specific content, for example, preferential tax object is unscientific and lack of interest measure; the way of preferential tax is relatively single; the set of the legal system and some specific content of industrial preferential tax is not scientific. Third, it is lack of strong punishment mechanism of preferential tax.The fourth chapter is about giving some suggestions which are given on optimization of the problems. First, establish the legislation system of preferential enterprise income tax and perfect the principles and value standard. Second, implement inclining enterprise income tax preferential rights allocation; set the preferential object scientifically; expand the ways of indirect preferential and establish a sound content of legal system. Third, improve the implementation of enterprise preferential legal system and increase the punishment towards violations.