Research On The Tax Incentive Effect Of China's Foreign Direct Investment

After the 2008 financial crisis,the world economy was dispirited,trade friction became intensified,and the developed countries had the return of capital,making Chinese economic growth mode based on export and investment for a long time face challenges,but also providing a golden opportunity for China's foreign direct investment to expand the scale and optimize the structure.Meanwhile the eighteen party 3 in plenary meeting decided to implement "one road and one belt" strategy(Silk Road Economic Belt and Silk Road on the sea),which make China's oversea direct investment pushed to new pattern.As the important factors to oversea direct investment decision,tax has been leverage to promote oversea direct investment.Since 2008,China's preferential tax policies from the original stress the importance of introducing foreign investment gradually tilted to encourage Chinese enterprises' foreign direct investment,but compared with the traditional oversea direct investment countries ours is still at the primary stage.This paper attempts to analysis our taxation incentive effect size of oversea direct investment,improve tax incentive system of China's oversea direct investment,and provide valuable reference for the implementation of economic restructuring.This paper consists of five parts:The first chapter,introduction,introduces the research background and significance,research status at home and abroad;The second chapter,the theory of tax incentives of foreign direct investment,gives a comprehensive definition of tax incentives,analyzes the income effect and substitution effect of the tax incentive policy,and how to solve the externality problem;The third chapter,the present situation and problems of the incentive policy of foreign direct investment of our country tax revenue,gives a comprehensive analysis of the three major characteristics of the development status of China's foreign direct investment,and from the two aspects of domestic law and International Tax Agreement expounds Chinese current foreign direct investment tax incentives status,from the two aspects of international double taxation deduction system and encouraging foreign direct investment tax incentives explores the problems and deficiencies;The fourth chapter,empirical analysis of the tax incentive effect of Chinese foreign direct investment.This model uses the oversea direct investment of China enterprises in the actual tax rate in our country and the host country X1 and X2 i as explanatory variables,the China's direct investment in the host country Yi as the explained variable,and select six control variables to build a model of regression analysis.Conclusion regression including: From the sample as a whole,the national level of tax burden has a greater impact to foreign direct investment of enterprises than the level of tax burden of foreign country,and the effect of tax incentive policy implementation is lack of the improved significantly;from the different economies,business investment in developed countries consider the broad market and advanced technology,but the investment in developing countries,tax is the key influence factors,because the developing countries needed foreign investment enterprises with foreign investment tend to give more preferential tax policies.The fifth chapter,perfects the tax incentive policies of Chinese foreign direct investment.First,in the improvement of international double taxation deduction system,proposed variational limit of method for limit analysis and shareholding reduced indirect credit method.Second,in the promotion of foreign investment to improve direct tax incentive system,recommended the development of policy oriented tax incentives,will be active in terms of tax sparing,allowed inside and outside the organization,the establishment of tax summary profit and loss for the foreign direct investment risk reserve system.