Research On Overseas Investments Income Tax Legal System In China

With the development of Chinese economy and the implementation of the "go global" strategy, Chinese residents" oversea investments have developed swiftly year by year. The oversea investments have become another way that Chinese resident enterprises choose to go-out after export, which provide larger development space for our resident enterprise as well as create more revenues from oversea investments income tax for China. Meanwhile the problems of international double taxation and international tax avoidance also become more and more serious in China, which challenges China’s current legal system of overseas investments income tax. In order to meet the needs of the new economic situation, the Individual Income Tax Law, Enterprise Income Tax Law and other relevant regulation has been revised. New regulation has been made to eliminate international double taxation and international tax avoidance. But the tax legal system still exist many deficiencies for the relevant research is far behind other countries, which is neither good for the development of overseas investment nor good for the interest maintenance of investment income.This dissertation takes the overseas investments income tax legal system as the research object, starting from eliminating both the international taxation and international tax avoidance, with the intent to perfect China’s overseas investments income tax legal system to promote a healthy and continues development of oversea investments and maintains China’s tax interest of oversea investment income.This dissertation begins with the elaboration the theoretical basis of overseas investment income tax legal system, pointing out the necessity of studying and perfecting the overseas investment income tax legal system. Then, it analyzes China’s current overseas investment income tax legal system, pointing out its existent problems of taxation practice, such as the confliction between per country direct ordinary credit and indirect ordinary credit, the over strict proportion of shareholding in indirect ordinary credit and so on.Third, focusing on analyzing the overseas investment income tax legal system of America, Japan and some developing countries, concluding the common points of these countries and the enlightenment for our legislation.In the end, some suggestions have been given, which include the method of global ordinary tax credit, allowing offsetting the losses of its overseas business organs against the profits of its domestic business organs and so on.