The Research On The Taxation Problems Of China’s Overseas Direct Investment

It is the foreign direct investment which is one of the most important ways of multinational enterprises participating in the resource assignment of the global market. Since the Chinese Government’s "going out" strategy has been proposed, the "bringing in" strategy has been transformed into "bringing in" and "going out" strategy. With the implementation of the "going out" strategy, more and more Chinese enterprises develop international markets for larger economic benefits.Foreign direct investment encompasses lots of issues, including financial, legal and other issues. Tax issue is one of the factors that influence ODI. It is necessary to make relative study on the topic of ODI tax issues to help those multinational enterprises build business. As tax leviers and tax payers are the two main bodies in levying tax, this paper will fully study tax issues of ODI from those two different angles. Based on this idea, this paper is structured by five parts.The first part is an introduction on the background, significance, literature review, research methods and research idea. First, the development process of Chinese "going out" strategy has been elaborated. Secondly, the literature review has summarized the main point of views and presented a brief evaluation based on analyzing those views. Further more, paper’s structure and research methods are also contained in this part.The second part describes the present situation of Chinese enterprises and relative tax issues on ODI.The third part indicate the main issues of tax policies concerning ODI, including un-clearly counting of foreign incomes, low quality of Internal Revenue Service etc..The forth part presents the main problems the overseas investment enterprises face. This part also will give an example To fully explore the issues faced by overseas investment enterprises. The fifth part provides solutions for these issues from two angles. Tax policies of other countries will be introduced in this part to providing better suggestions.One of the innovation of this paper is that analyze the topic both from tax levier’s and tax payer’s perspective, and another innovation lies in its timeliness.