The Demand And Optimization Of China's Enterprise Tax Credit System In The Key Period

Looking back on the history of China's Enterprise Tax Credit System,there are three institutional logics: the establishment logic is to attract foreign investment;the core logic is to maintain the national tax jurisdiction and protect the tax base;the exception logic is to give play to the industry orientation.As China enters the key period with the goal of transforming growth power and the characteristics of behavior under the economy,the functional demands of the Tax Credit System have changed,which has caused controversy over the application of the Tax Credit System or Tax Exemption System.To explore the demands of the Credit System in the key period,from the perspective of external challenges,the trend of international territorial tax reform,which is typical of the United States,has weakened the competitiveness of China's Tax System.In addition,this is not conducive to Chinese companies carrying out transnational operations,and it has suppressed China's ability to attract foreign investment.From the perspective of internal demand,on the one hand,the goal of cross-border operation of enterprises requires that the Tax Credit System actively reduce the tax burden of overseas enterprises,and support enterprises to carry out international operations;On the other hand,the goal of the cross-border capital flow management policy requires that the Tax Credit System guards against excessive foreign investment,and at the same time strengthens its attractiveness to foreign capital,especially high-tech foreign capital.Because the Credit System or the Exemption System both have the part which adapts or does not adapt to the system demand in the key period.Therefore,the optimization plan for China's Enterprise Overseas Income Tax Law is to implement the Mixed Tax System: piloting the Participation Exemption system in high-tech fields;continuing to and optimizing the Credit System in other fields,especially the need to establish supporting rules for the Comprehensive Credit System as soon as possible.