International Comparison And Experience Of The Controlled Foreign Company Tax

The Controlled Foreign Company tax is special tax regulations of Controlled Foreign Company, is animportant component of China’s tax system, has a very important role in China’s economic development.With the continued development of China economy, more and more enterprises go, choose the overseasdevelopment. In2010, foreign investment enterprises in overseas China up1.6million; in2011, this figurerose to18000; by the end of2012, domestic investors Chinese1.6established in179countries in2.2foreigninvestment and direct investment enterprises. In2012, China’s foreign direct investment flows of$87800000000, a year-on-year growth of17.6%, the foreign investment flows are global in traffic, of6.3%and2.3%,2012China foreign direct investment flows to fame and fortune global countries (area) ranked third,ranked13in stock. Overseas investment choice of more and more enterprises, on the one hand, promote theeconomic development of our country, on the other hand, this also is the tax system in our country has broughtenormous challenge, some companies in international tax avoidance purposes, will be the establishment ofsubsidiaries in tax havens. In2012, China’s foreign direct investment stock of the top twenty countries orregions, offshore center international famous Hongkong, the British Virgin Islands, the Cayman Islands,Bermuda are located at first, second, third and fourteenth. In this case, China has formulated the ControlledForeign Company tax to regulate it.In2007, China promulgated a new enterprise income tax law, the tax behavior of Controlled ForeignCompany system, designed to regulate the established by our resident enterprises abroad. After thepromulgation of the "PRC Enterprise Income Tax Law Implementation Rules" in the relevant provisions of thefurther supplement. But compared with other countries, China Controlled Foreign Company tax system is notmature enough, need further improvement.The main methods used in this paper: summarize the research method and empirical literature. First of all,through the analysis of literature on the Controlled Foreign Company tax theory--is asymmetric informationtheory; secondly, after reading on the analysis of the existing domestic and foreign data, analyzes the presentsituation of our country and the status of typical countries Controlled Foreign Company tax related tax system.Including the main problems existing in China Controlled Foreign Company tax: tax loopholes in tax havensthat subject; standard is not reasonable; the taxable income that is not reasonable; the lack of industryexemption clause. Including mainly exist in the tax collection and management aspects of the problem: Civic tax awareness is weak; the lack of international tax cooperation necessary; foreign enterprises tax system is notperfect. The typical Controlled Foreign Company tax system can be used for reference to include: defineindirect control standards; perfect the provisions on the holding time increased the relevant provisions; toavoid double taxation; clear the judgment standard of no tax avoidance motivation. Finally, based on theforeign experience, through the comparative analysis of the perfect proposal, China Controlled ForeignCompany tax include: clear "control" standard; perfecting the taxpayer identification; the tax as tax havens; bymixing method to determine the taxable income; increase the industry exemption clause. Tax collection andmanagement suggestions include: enhancing the citizen’s awareness of tax paying, strengthen internationalcooperation in tax revenue, regulate the foreign enterprise tax declaration system.