Study On The Impact Of China's Tax Preferential Policies On OFDI

The communique of the central economic work conference in 2018 pointed out that China should "focus on the construction of 'One Belt and One Road',innovate the way of outbound investment,and promote the development of trade and industry through investment",laying a good policy support and institutional guarantee for Chinese enterprises to "go global".Meanwhile,by the end of 2018,China's OFDI has been higher than FDI for three consecutive years,showing a good development trend.Therefore,there are theoretical and practical significance to study the formulation and implementation of preferential tax policies for Chinese resident enterprises' overseas direct investment,which is conducive to exerting policy guiding power and enhancing enterprises' confidence in "going global".In this paper,first of all,the preferential tax policies of China's OFDI are sorted out.Secondly,descriptive statistics are adopted to analyze the convergence of China's OFDI flow in 31 provinces(autonomous regions and municipalities directly under the central government)and the macro location distribution of China's OFDI.In addition,the research method of cross-multiplication term regression measurement was adopted to carry out discussions from multiple dimensions of countries along the "One Belt And One Road" and tax havens.Combined with control variables such as the economic development level and tax burden level of the host country,the influence effect of tax policy on China's OFDI was measured.The analysis shows that: No.1.At present,the main direction of China's OFDI is in Asia,the total OFDI in other regions is small,and the amount of OFDI in the central and western regions is obviously lower than that in the eastern regions,which shows that the OFDI in various regions in China is significantly different.No.2.The influence of tax agreement factors on China's foreign investment remains stable and positively correlated.It can be seen that tax agreement has a significant incentive effect on China's OFDI.No.3.The regression coefficients of per capita GNP and population are significantly positive,indicating that per capita development level and purchasing power are the locational factors that enterprises mainly consider when investing abroad.The overall tax burden level and GNP of the host country are significantly negative in the regression,indicating that the tax burden cost is still a significant negative force for Chinese enterprises' OFDI.No.4.By controlling the factors of tax havens,this paper finds that China's outbound investment prefers tax havens with light or even zero tax burden and simple regulatory procedures,which shows the obvious policy guiding power of bilateral tax treaties for such countries.In view of the above findings,this paper puts forward corresponding policy Suggestions,including giving full play to policy guidance and supporting enterprises to invest in developed countries;strengthening financial support and improving the legal system of foreign investment;improving tax agreements and actively participating in international tax affairs;and strengthening tax guidance of cross-border direct investment to enhance national competitiveness.