The Influence Of Tax Policy Of Shanghai Pilot Free Trade Zone From International Comparison

To improve the ability of attracting and using foreign investments, and to find a new way to maintain economic growth, Shanghai pilot Free Trade Zone came into being. As a key factor, we should notice that tax is important to the development of FTZ. But considering the lowland effect caused by the tax preferences, the government announced that there was no zero tax rates, no duty free or preferential policy of income tax. While the FTZs around the world are committed to optimizing their soft environment and using tax policy to enhance their own attractiveness, whether the competitiveness of Shanghai will be weakened without this advantage, is the focus of this article.This Article chooses Singapore and Hong Kong as the comparison of Shanghai, the conclusions are as follows:In the aspect of shipping, the hardware facilities of Shanghai pilot FTZ are excellent, but compare to Singapore, the soft environment still need to improve as turnover tax and income tax are against shipping service and finance.In the aspect of trade, the development of Shanghai pilot FTZ are recognized, but compare to Singapore, there exist a gap in service trade, headquarters economy, convention and exhibition industry. These aspects are also not including in the tax policy of Shanghai pilot FTZ.In the aspects of finance, share market and the output value of finance are boost in Shanghai, but the organizations, employees and FDI are week when compare to Hong Kong. However the tax policies are harmful to the development of finance.We can find out the deficiencies of Shanghai pilot FTZ come from the soft environment. Taking the tax system into account, we could study the impertinency of tax policy has become a shortcoming of Shanghai pilot FTZ. So we have to establish a competitive tax policy for Shanghai pilot FTZ.