Transformation Of The Legal Chinese Preferential Tax Policy

Since the founding of new China, China’s tax system has undergone severalmajor changes, tax preferences, as a part of the tax system in our social life, impactmore widely. As in the period of reform and opening up, China introduced a series offoreign-invested enterprises and coastal areas for the introduction of a lot ofpreferential tax provisions, which played a positive role in attracting foreigninvestment and supporting the development of economy. Then according to thespecific conditions of China, it has introduced preferential tax measures, thesemeasures although can promote the development of our national economy, but alsobring some different levels of drawbacks, such as the main body of preferential taxauthority is not clear, low-level legislation, management not standardized, manypolicy provisions, messy and so on. Faced with these problems, in November12,2013, the Third Plenum of the eighteenth through "About several major issuescomprehensively deepen reform decision", it presents deepening the reform of thetaxation system, improving the tax system, developing a unified tax laws andregulations by the specialized agencies, clearing the preferential tax policy. Therefore,the thesis about Analysis of the legal Chinese preferential tax policy is related to thecentral policy standards, it has a certain significance.This article is mainly started from the preferential tax policies in recent decades,described the background, specific content of Chinese preferential tax policy, andsummarized the characteristics of the preferential tax policy in each period. Then, itintroduced the implementation of preferential tax policies, and analyzed advantagesand disadvantages of Chinese preferential tax policies. There are some problemsabout Chinese preferential tax policies, such as low-level legislation, management notstandardized, and so on. Finally, it draws conclusion how to improve our current taxpreferential legal, analysis legal policy needs a series of conditions and supportingmeasures needs to be established, such as clearing the main power of preferential taxlegislative, raising the legislative level, improving the budget law, establishing a seriesof legal provisions to support the "The rise of central China" and "Development of theWest Regions", improving the enforcement of the supervision mechanism.