Analysis of the new enterprise income tax preferential policies
Abstract
Tax preferences indicate some measures to reduce or waive a tax burden by state tax policy on tax laws and administrative regulations in the provision of some taxpayers and tax targets. According to the needing of national economic and social development, January 1, 2008 implementing of the new "Enterprise Income Tax Law" to the original preferential tax policies for the appropriate adjustments: industrial policy-oriented mainly regional development-oriented mechanism, supplemented by the income tax concession and corporate income tax preferential policies for the development rights have been in focus. In order to avoid excessive influence to foreign-funded enterprises, small-scale enterprises and enterprises which have been regularly enjoy preferential corporate tax relief by the implementing of the new Enterprise Income Tax Law and ensure a smooth transition, the state promulgated a series of transition policy: the western China Preferential tax policies for development, the special economic zones and Shanghai's Pudong New Area, the new high-tech enterprises, the establishment of transitional tax incentives continue. The new Enterprise Income Tax Law had considered fully the preferential policy and the current law, the policy engagement, and used interim measures, impacts our country economic development, domestic and foreign-funded enterprises greatly. But it is must be paid attention to that the tax preference has always been a "the double-edged sword" to our country tax system. When the specific policy purpose is served, the tax law restraint conditioning and the non-standard risk and the possibility of corrupt is increased. On the point, the new tax law also needs further consummates.
