Research On The Environment Of Taxation Legislation For Investment Promotion In China(Shanghai)pilot Free Trade Zone

Investment facilitation is one of the important mission of Shanghai free trade area.Under the new circumstance,tax incentive is no longer the main way to promote investment,and taxation legal system will play an important role.Not only Fiscal and Taxation Reform in China,but also Shanghai Free Trade Zone contributes to the tax reform.In order to improve the taxation legal system,we can start from substantive tax law、procedural tax law and tax avoidance to create a legal environment with“low cost,efficiency and equitable ”,which is the main issue of tax reform in Shanghai free trade zone.Shanghai free trade zone carries the goal of transformation of government functions and system innovation,investment is of great importance to the establishment of Shanghai free trade zone.Through Shanghai is already a fertile land for investment, its investment-oriented economic growth pattern is becoming outdated,but creating an internationalization,legalization and low cost environment for investment with appropriate supervision,taking an advantage of the new rules of international cross-border investment is the point.The problem of today’s Shanghai free trade zone including the uncertain state of tax power,insufficient tax preferences and lack of way to highlight the right of taxpayers.Modern investment not only depends on the efficiency,convenient and transparent system,but also depends on a good taxation legal system.Thus,environment of taxation legal system can help Shanghai free trade zone to accomplish its goal.The reason of the importance of taxation legal system is the legal system plays a key role in the establishment of Shanghai free trade zone.The legal system escorts for the market and economic entities.The legal system is one of the most important system,serving for the adjustment of economic,the performance of government,the innovation of financial market.By the innovation of the legal system,it brings the innovation to every places.A better legal system can arouse the vitality of economic entities and prevent deviation of the way of innovation.Tax preferences has certain disadvantages such as the unstability and the unfair burden of enterprises.Thus, environment of taxation legal system is the main content of the establishment of Shanghai free trade zone for investment.The experience of construction of free trade zone from all over the word offers useful reference to the construction of Shanghai free trade zone.A sound law system is the common factor of successful free trade zones.Definite functions of taxation legal system is also very important.Besides,many countries no longer boost competitiveness through the way of tax preferences.The theories of taxation legal system remains to be determined.On one hand,tax principle of legality requires stability which may against the changeability of the reform.Firstly,any reforms can’t infringe taxpayers’ property without the permission of the tax law. Secondly,the functions of tax principle of legality will be weakened in Shanghai free trade zone under the circumstance of economic reform,the stability of the law should make a compromise to the economic situation.Finally,tax principle of legality should become the principle the the social reform,which means it should change with times in order to alleviate the damage caused by the reform.On the other hand,the goal of the principle of taxation fairness should match the goal of generalized and extended in Shanghai free trade zone. The generalized and extended character of tax law should be discussed from the perspective of tax principle of legality.From the perspective of economics,environment of taxation legal system is the motivation of financial innovation,the functions of financial innovation theories should be examined under the taxation system.Taxation legal system combines not only the government and the market,but also public law and private law,it is the main measure used by government to influence the market.From the perspective of taxation legal system,Shanghai free trade zone’s environment for investment should have three dimensions:low cost,efficiency and equitable.Investment environment of low cost depends on the innovation of substantive tax law,personal income tax,deferred tax system of personal income tax can change the occupy time of money,which can draw talents,the reform of expense deduction,investment tax credit,carry forward of unused tax losses can lower the cost of enterprises,the reform of valued-added tax of all industries can avoid double taxation.Investment environment of efficiency depends on procedural tax law, a sufficient taxation legal system is more attractive than the low tax rate.Investment environment of equitable depends on the the legal system of anti tax avoidance,a better anti tax avoidance system can avoid base erosion, create a equitable atmosphere for investors.