The Study On Optimization Of Tax Incentives Of Chinese Direct Investment In The EU

Because of the higher degree of openness of the EU economy,the regular judicial system,the more stable Society,and the more high science and technology enterprises,the EU has been the main destination of the world that attracts foreign direct investment.By the double impact of the financial crisis and the European debt crisis,European Union countries form the demand for foreign capital.Many EU Member States ease the investment restrictions in some areas,and introduce appropriate tax policy and asset privatization policies to attract capital inflow.So this is a good chance to promote Chinese direct investment in EU and upgrade and adjust Chinese industrial structure.Since 2009 the development of Chinese direct investment in the EU is high,but compared to the United States and Japan,China's direct investment stock of the EU accounted for a very small stock of EU foreign investment,and the investment in the region and the industry is unreasonable.Furthermore China's direct investment in EU faces more uncertainty.In this regard,the government needs tax incentives to encourage foreign investment enterprises to invest in the EU and make the competitiveness of these enterprises strengthen.Finally these enterprises can seize the opportunity and effectively promote sustainable development of China's economy.This paper analyzes the international context and the domestic background of Chinese direct investment in the EU,describes the necessity to develop Chinese tax incentives to promote Chinese direct investment in EU,and further analyzes dynamic theory of ODI and the tax incentive effect of ODI that shows tax incentives can promote ODI.Then this paper reviews the development of China's direct investment in the EU,development of tax incentives,and the details descriptions of our current ODI tax incentives.While the article makes the corresponding empirical analysis of tax sparing policy of Chinese direct investment in EU.On this basis,this paper sums up the problems of tax incentives,such as system of tax incentives is imperfect,tax incentives orientation is not clear,range of tax sparing is small.Finally,based on the general theory and existing problems of tax incentives,combined with international experience of ODI tax incentives,this paper points out to the direction of adjustment and countermeasures of China's foreign investment tax incentives,including improving tax incentives system of ODI,making industry-oriented and location-oriented preferential taxation,strengthening to sign tax sparing with EU member states,increasing the number of the tools of tax incentives and so on.