In China, the income tax of enterprise is very different between foreign funded enterprises and other domestic enterprises. It is believed that this discrimination is harmful to the entire economy. So there is a refor...In China, the income tax of enterprise is very different between foreign funded enterprises and other domestic enterprises. It is believed that this discrimination is harmful to the entire economy. So there is a reform in the tax system to build a uniform enterprise income tax. This is a significant reform in China＇s tax system, so every decision about this have to count the cost and the benefit carefully. The author has introduced the Computable General Equilibrium （CGE） to simulate this new tax system and value its benefit and cost. There are two different models in the paper; they are of different assumptions and for different purposes. Model I is a static CGE model and model II is a Ramsey Dynamic model. The static model is mainly used for comparative static approach to examine how the tax reform will change the endogenous variables. According to the results of the model, more goods will be produced by both of the DFEs and FIEs after the tax reform in the medium and low tax effective tax rate situations. If the nominal tax rates decrease 24.24% （from 33% to 25%）, the enterprise income tax will only reduce 19.36% and the total tax revenue will only reduce 1.911%. The dynamic model will concentrate on the costs and benefits during the transition. From the results of the model, a lower tax rate will increase the level of investment, capital stock, capital prices, wage rate and also the growth rates through transition. If the capital tax rates are changed gradually, the fluctuating of transition will be smoothed a little.展开更多
Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined pa...Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger＇ merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.展开更多
*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the f...*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the following three years. A choice between the two may be decided by the said enterprises. **Service industry, those enterprises with a foreign capital of more than US$5 million shall be exempt from the tax展开更多
Doing business in China,while lucrative,can be a mine-field to the uninitiated.This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.Th...Doing business in China,while lucrative,can be a mine-field to the uninitiated.This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.This article looks at how foreign investors are taxed in the People’s Republic of Chin(PRC)under the enterprise income tax(EIT),regardless of whether the investor is operating as a wholly foreign-owned展开更多
Doing business in China, while lucrative, can be a mine-field to the uninitiated. This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.
In terms of policies to Chinese enterprises income tax system, especially nowadays two income tax systems within domestic and foreign enterprises, their weakness is becoming more and more apparent. In order to perfect...In terms of policies to Chinese enterprises income tax system, especially nowadays two income tax systems within domestic and foreign enterprises, their weakness is becoming more and more apparent. In order to perfect China＇s future tax system, it is supposed to combine the two income tax systems within domestic and foreign enterprises.展开更多
文摘In China, the income tax of enterprise is very different between foreign funded enterprises and other domestic enterprises. It is believed that this discrimination is harmful to the entire economy. So there is a reform in the tax system to build a uniform enterprise income tax. This is a significant reform in China＇s tax system, so every decision about this have to count the cost and the benefit carefully. The author has introduced the Computable General Equilibrium （CGE） to simulate this new tax system and value its benefit and cost. There are two different models in the paper; they are of different assumptions and for different purposes. Model I is a static CGE model and model II is a Ramsey Dynamic model. The static model is mainly used for comparative static approach to examine how the tax reform will change the endogenous variables. According to the results of the model, more goods will be produced by both of the DFEs and FIEs after the tax reform in the medium and low tax effective tax rate situations. If the nominal tax rates decrease 24.24% （from 33% to 25%）, the enterprise income tax will only reduce 19.36% and the total tax revenue will only reduce 1.911%. The dynamic model will concentrate on the costs and benefits during the transition. From the results of the model, a lower tax rate will increase the level of investment, capital stock, capital prices, wage rate and also the growth rates through transition. If the capital tax rates are changed gradually, the fluctuating of transition will be smoothed a little.
文摘Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger＇ merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.
文摘*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the following three years. A choice between the two may be decided by the said enterprises. **Service industry, those enterprises with a foreign capital of more than US$5 million shall be exempt from the tax
文摘Doing business in China,while lucrative,can be a mine-field to the uninitiated.This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.This article looks at how foreign investors are taxed in the People’s Republic of Chin(PRC)under the enterprise income tax(EIT),regardless of whether the investor is operating as a wholly foreign-owned
文摘Doing business in China, while lucrative, can be a mine-field to the uninitiated. This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.
文摘In terms of policies to Chinese enterprises income tax system, especially nowadays two income tax systems within domestic and foreign enterprises, their weakness is becoming more and more apparent. In order to perfect China＇s future tax system, it is supposed to combine the two income tax systems within domestic and foreign enterprises.
