The Impact of New Enterprise Income Tax Law of PRC on Taiwanese High-Tech Enterprises in China- Case Study Analysis
Chang, Ting Ting
Huang, Jr Tsung
Chang, Ting Ting
Enterprise Income Tax Law of PRC
Taxation Reform in China
Tax integration in China
|上傳時間: ||2009-09-14 13:35:59 (UTC+8)|
|摘要: ||Mainland China has implemented two sets of income taxes systems for many years. One is for the foreign enterprise “1991 Promulgated Foreign Invested Enterprise and the Foreign Enterprise Income Tax Law” and another one to the domestic enterprise, “1993 promulgated Enterprise Income Tax Temporary Regulation”. The coexisted of two taxes not only resulted in unfair taxation but also created fake foreign enterprise phenomenon.
It is especially difficult for people to accept this situation after China joined the World Trade Organization. The legislation conditions matured after speedy growth of Chinese economy. The Chinese government considered the current financial situation can withstand the impact on decrease in tax revenue after new tax law implemented and it met one of the current economic development targets of “nurture domestic enterprise”. On March 16, 2007, the “Enterprise Income Tax Law of the People's Republic of China” (here in after referred it as the New Law) was eventually approved after many years of research. It surely will have profound influence on foreign enterprise including the Taiwanese businessmen.
The purpose of the study is how the major changes of the New Law impacts the China investment of the Taiwanese businessmen. The structure of the study, other than abstract and conclusion, firstly, the author will discuss of the content of system and policy changes. Next, based on the major changes of the New Law, how they affect designed research method. Analyze and forecast its possible impact and influence on Taiwanese businessmen in the following categories: (1) tax incentive; (2) organization structure organization, and (3) tax risk. Finally, the author will propose the related action taken and suggestions on the impact.
1. Buckley, Peter J. Mark Casson（1976）, The Future of the Multinational Enterprise, New York: Holmes and Meier Publishers
2. Chang Cheng-chung (2001), “Comparison between Chinese and Taiwanese taxations”, Master’s thesis, Department of Accounting, Chung Yuan Christian University
3. Chang Te-chun (2003), “Research on the impact of China’s policies and laws governing investments by foreign-funded businesses on Taiwanese businesses’ investment in China”, Master’s thesis, Department of Accounting, Soochow University
4. Chang Hui-wen (2002), “Comparison between China’s foreign-funded enterprise income tax and Taiwan’s business income tax”, Master’s thesis, Department of Accountancy, National Taipei University
5. Chen Ching-yi (2003), “The impact of China and Taiwan’s entrances into WTO on the tax laws and its countermeasures”, Master’s thesis, Division of economics and trade, Institute of Accounting and Taxation, Feng Chia University
6. Chen Lian-Fa (1995), A Study on Foreign Business Tax System, studying and analyzing tax law principles.
7. Chiu Yu-Rong (1998), A Study on Law Issues of Foreign Invested Enterprise in China, from the viewpoint of law.
8. Coyne E. J.(1994), An Articulated Analysis Model for FDI Attraction into Developing Countries.Florida: Nova South eastern University.
9. Ding Ya-Ning (2005), A Study of China Enterprise Income Tax Reform, to examine from the law and financial view the trend of China New Enterprise Income Tax.
10. Dunning,J. H. (1997) Trade, Location of Economic Activity and the Multinational Enterprise: A Search for an Eclectic Approach. In B. Ohlin, P. O. Hesselborn and P. M. Wijkman, eds., The International Allocation of Economic Activity. London: Macmillan.
11. Hong Shu-Hui (1999), A Simulation Analysis of Mainland Value Added Tax-Export Tax Refund.
12. Huang Chi-ying (2001), “The impact of China’s tax preferences on its high-tech industry---National high-tech districts”, Master’s thesis, Division of economics and trade, Tangkang University Graduate Institute of China Studies
13. Kojima, Kiyoshi（1978）, Direct Foreign Investment: A Japanese Model of Multinational Business Operation, New York: Praeger Publishers
14. Liu Cheng-Fang (1999), A Study on China Circulating Tax.
15. Liao Li-tung (1995), “The comparison of Chinese and Taiwanese income taxes in tax laws”, Master’s thesis, Tunghai University, Master in Department of Law and Graduate Legal Studies
16. Liao Fu-shiang (2002), “Research on factors that influence Taiwanese businesses’ decision to invest in China”, Master’s thesis, Institute of Public Finance, National Chengchi University
17. Lu Shu-ching (2001), “Research on preferential enterprise income tax measures in China and Taiwan”, Master’s thesis, Department of Accounting, Chung Yuan Christian University
18. Peng Ching-Wei (1999), A Study on Income Tax System of Domestic/Foreign Invested Enterprise in China.
19. Pei chun-kai (2002), “Research on the correlations between China’s tax preferences and the outward relocation of Taiwanese businesses”, Master’s thesis, Institute of Public Finance, National Chengchi University
20. Shih Bing-chung (1997), “The impact of China’s tax reform on Taiwanese businesses’ investment in China”, Master’s thesis, Institute of Mainland-China Research, National Dong-Hwa University
21. Shieh Ming-shun (2001), “Research on the preferential tax measure and tax planning of Taiwan-listed (including OTC-listed) businesses for the investment in China”, Master’s thesis, Department of Accounting, Chung Yuan Christian University
22. Ting Ya-ning (2005), “Research on China’s enterprise income tax reform”, Master’s thesis, National Taiwan University
23. Tsai Shu-Chen (1999), A Study on Tax Dodge of China Value Added Tax.
24. Wang Shu-ching (2002), “Taiwanese businesses’ arrangement and tax planning for investing in China ---and a case study on a listed company”, Master’s thesis, Department of Accounting, National Chengchi University
25. Yu Ming-ting (2000), “The concerns of preferential tax measures and tax burden of Taiwanese businesses for their investment in China”, Master’s thesis, Division of economics and trade, Institute of Accounting and Taxation, Feng Chia University
1. Jhu wei cyun and Tian shu ying (2006), The trend and influence of combination of China’s domestic and foreign enterprise income tax law, Taiwan Economic research Journal, 29(7): 62-72
2. Svejnar,J. and Smith,S.C.(2005), The Economics of Joint Venture in less Developed Countries.Quarterly Journal Of Economics, 2 :149-167
3. Tang,R.Y.W.(2005), Environmental Variables of Multinational Transfer Pricing: AU.K Perspective[J]. Journal of Business Finance & Accounting, 19 :4-8
4. Shen, Kun-Rong, Lee Jia (2003), Study on the experience of China’s trade development and economic growth, 5:32-40
5. Wang, Li-Ping (2005), Understanding the situation of “the false FDI”, Jhe Jiang Finance.
6. Lei, Kuang-Ping (2006), The influence of Enterprise Income Tax reform on FDI in China, Tax Research, 251: 38
7. Ga, Jing-Jyuna, Jiang, Siou-Jyuna (2006), The situation of “The False FDI” in China, Special Economic Zone.
8. Liu, Jiang-Wen (2007), The tax rate of Enterprise Income Tax Law should consider multi-benefit of different unit, Law Daily.
9. Fang, Hwei-Rong (2007), The Influence and respond of the Enterprise Income Tax Law of PRC on Taiwanese Enterprises, International Finance Reference, 12(54)：124-135
10. Wu, De-Fong, Syu, li-Jhen (2007), The Changes of Enterprise Income Tax Law of PRC and Taiwanese Enterprises’ Strategies, Accounting Research Monthly, 258：50-59
11. Sie, De-Chang (2007), The Combination of the Enterprise Income Tax Law of PRC is Good for Fair Competition in China, Tax, 1999:36-37, 2001:37-39
12. Cai, Hong-Ming (2007), The influence of the Implementation of Enterprise Income Tax Law of PRC, Leaming Development,3(613):114-123
13. Wu, Yao-Yan (2008), The Influence of China’s investment environment on Taiwanese Businesses, IBT Security Monthly, 114:51-61
14. Wu, Yuang-Ran (2008), The Implementation of the Enterprise Income Tax Law of PRC─Adjustment of the Operation Strategy to Reduce the Impact, Teema Times, 3:84-86
15. Gao-Chang, Chang, Jhih-Hwei (2008), The Influence of Changes of System and Policy on Taiwanese Enterprise investment in China, Institute of National Policy Research.
16. Chen, De-Sheng (2008), The Economic Development of Yantze River Delta and the Investment Prosperity of Taiwanese Business, Institute of National Policy Research.
17. Gneg-Su，Global Enchase (2008), Land Resorce and the Strategic Choice of Taiwanese Businesses in Pearl River Delta, Institute of National Policy Research.