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On the unification of domestic and foreign enterprise income tax related issues

Author: CaiLiJuan From: www.yourpaper.net Posted: 2009-04-01 00:38:07 Read:
Abstract: the 2007 year in March 16th, the five session of the ten National People's Congress closing session adopted by vote of the people's Republic of China enterprise income tax law of China? Then will gradually bid farewell to the "dual-track" era of enterprise income tax, income tax rates for domestic and foreign-funded enterprises after the reunification is 25%? In accordance with international practice and based on the actual situation, in detail we through the main basis and the principle of unified domestic and foreign enterprise income tax analysis and new policy related issues, has conducted the research to the problems and put forward relevant proposals, the merger of the two taxes, both for domestic and foreign companies, means a relatively fair competition starting point?
Keywords: domestic-funded enterprises; foreign enterprises; enterprise income tax; the new law

In March 16, 2007, the five session of the ten National People's Congress closing session adopted by vote of the people's Republic of China enterprise income tax law? The bill passed, then China will gradually bid farewell to the enterprise income tax "double-track" era? According to the "enterprise income tax law", in the people's Republic of China, enterprises and other organizations that obtain income (referred to as company) for the enterprise income tax, in accordance with the provisions of this Law shall pay enterprise income tax? The corporate income tax rate is 25%? Of tax law changes embodies the spirit of social justice to promote and optimize the industrial structure by fiscal means, more in line with the needs of China's economic and social development?
main basis and principle of , a unified enterprise income tax
Unified enterprise income tax basis mainly have the following several aspects: first, preferential foreign enterprise is too large, is not conducive to fair competition? Foreign investment enterprise income tax law, is the beginning of reform and opening up, China's shortage of funds? Investment serious insufficiency circumstances, according to the practices of some countries to develop the important characteristics is? More concessions, and the emphasis on encouraging attract capital? Domestic enterprise income tax is under the condition of the planned economy, the former state-owned enterprises profit all over, collective enterprises and private enterprise tax burden under the condition of reform? Compared with the foreign investment enterprise income tax, its remarkable characteristic is less discount, expense deduction too restrictive, is not conducive to fair competition? Second, domestic enterprises in pre-tax deduction too restrictive, resulting in tax burden of domestic enterprises to foreign investment enterprises? According to relevant data, in 2006, foreign investment enterprises in total industrial output value of China's industrial output value accounted for 23%; in 2006 the export of foreign-funded enterprises accounted for the amount of the industrial output value of foreign-funded enterprises 43%, 19 percentage points higher than the national average; increase the amount of the foreign-funded enterprises in 2006 industrial output value accounted for the national industry output value increase in half, but in 2006 the foreign investment enterprisesIndustry pay enterprise income tax (including enterprises within the territory of China in overseas market to foreign investment enterprise pay enterprise income tax), the only national enterprise income tax of 18.4%? Third, the nominal tax rate and the average real tax burden difference is too large, serious impact on the competitiveness of domestic enterprises? According to the regulations of the current tax system the nominal tax rate, the foreign enterprise income tax is 33%, because the preferential treatment of tax reduction or exemption and deduction policy is different, resulting in the actual tax burden have significant difference? According to the relevant statistics, at present, the average real tax burden of enterprise income tax of about 25%, domestic enterprises, foreign-funded enterprises is about 11%, a double above, which seriously affect the competitiveness of domestic enterprises? Fourth, according to corporate affiliation? Investors? Ownership division of the central revenue and local revenue, by the State Tax Bureau and Local Taxation Bureau respectively, collection management, contradictions?
According to China's actual situation, the main principles of the unified enterprise income tax is:
The 1 fair tax principle? One is horizontal equity, which is required to have the same capacity of the taxpayer must pay the same tax, no longer distinguish taxpayer funding sources? Organization? Different economic types; two is the vertical equity, which has different ability to pay tax must pay different tax, tax capacity?
2 moderate tax principle? The principle requires the normal need tax revenues can meet the state financial expenditure, and synchronized with the development of the national economy, and on the basis of the social tax burden to lighter, so the state taken a degree, enterprise burden is moderate?
3 preferential tax volume moderate forms of reasonable layout??? Oriented principle? Volume moderate means to minimize tax incentives to specific industry the most effective encouragement and support, at the same time, consider the carrying capacity of the state finance and the tax burden on business? Diversity requirements of preferential tax should take regular breaks the accelerated depreciation?? investment credit and other preferential policies? Reasonable layout requirements of preferential tax should be based on different regional setting various preferential policies, but also should pay attention to the coordination of special economic zones? Economic and Technical Development Zone, coastal economic development zone?? and the degree of the Midwest preferential way, in order to facilitate the coordinated development of the regional economy? Oriented requirements of preferential tax policies should be can reflect the government's policy intentions, to optimize the conducive to the rational allocation of resources and industrial structure as the goal, the rapid development of supporting industries encouraged by the state, to cultivate and improve the international competitiveness of China's industries?
4 efficient collection principle? Efficient collection and management principle on one hand require the tax authorities pay attention to administrative efficiency, as much as possible to save tax costs, including saving tax authority collection costs and taxpayers pay the cost of the extra burden; on the other hand, the minimum tax, the additional burden refers to the tax due to tax cost, more than economic loss?
two, the new tax law issues related to
The new tax law changes the biggest than tax rate adjustment, unified tax rate of 25% foreign enterprises and domestic-funded enterprises to the same starting line at the same time, the new tax law also increase? Terms, to prevent the Multi-National Corporation will domestic profits to low-tax countries tax? The provisions of article forty-fifth, by a resident enterprise, or by residents enterprises and Chinese residents to control where the actual tax burden is obviously lower than the fourth article of this law the provisions of the first paragraph of the tax rate level of the country (region) of the enterprise, not because of reasonable business needs and profits are not distributed or reduce distribution, should belong to the resident enterprise part of the profits, the resident enterprises shall be included in the current income?
Provisions in the new tax law, the total income of each taxable year of enterprises, after deduction of the non-taxable income tax deductions?? and balance allows to make up the losses of the previous year, the amount of taxable income shall be the old tax law? "The total annual income tax deduction of the costs, expenses and losses? Provisions balance" more detailed? Notably, explicitly stipulated in the new law, charitable donations incurred by enterprises, within the year a total profit of 12% parts, is permitted to be deducted?
At the same time, the new tax law to strengthen the prevention of tax evasion, specially equipped with a chapter "special tax adjustments", a total of 8? Rules for producing enterprise and its affiliated parties cooperation costs, in accordance with the principle of independent transaction allocation; business pricing between an enterprise and its affiliated parties, by the tax authorities and business enterprises need consultation confirmed; provide annual transactions report? Under the old tax law, only a requirement?
three, on the implementation of the new tax proposals for
(a) standard tax base, unified and standard deduction project cost?
The unified domestic and foreign enterprise income tax, the tax base is an important external environment for the establishment of a modern enterprise system? The current domestic and foreign enterprises, there are differences in the cost and the standard deduction, the deduction standard of domestic enterprises is higher than that of foreign enterprises, the tax base than foreign enterprises enterprises with foreign capital to narrow these differences? Is not conducive to conform with international convention, is an important factor that causes tax burden is not balanced, must deduct standard design suitable for domestic and foreign enterprises? Dividends from other enterprises? Bonus? Foreign enterprise income tax is the tax tax deduction method, and domestic enterprise income tax is the tax deduction method using credit? Domestic-funded enterprises to profit or dividends dividends? There is a make up the difference tax problem, while foreign enterprises there is no back tax problems? In order to avoid double taxation and economic balance of tax burden of foreign-funded enterprises, but the relevant provisions, reference foreign enterprise income tax in the tax law legislation?
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