A Research On Unified Legal Person Income Tax System In China

The income tax of legal person is a kind of tax aimed to the income of legal person. Just like the enterprise income tax and corporation income tax in UK and US, it belongs to the category of income tax, one of the leading tax categories in the tax system of the world. It is attached much importance by public because of its direct participation in the distribution of enterprise's profits and influence on the stable development of national economy and society.The Chinese reform of tax system in 1994 basically established income tax as the principal part of current revenue system. On the basis of combination of three inner invested enterprises income taxes, the temporary statute on PRC enterprise income tax and the law of PRC foreign invested enterprise and foreign enterprise income tax was past and put into force. More consummate Chinese enterprise income tax system principally coordinating with international traditions has been established. This is undoubtedly helpful to promote the standardization, equity and rationalization of enterprise income tax in China. But with the progress of social marketing economy, especially with our entry to WTO and fastened process of global economy integration, problems of current enterprise income tax system has been exposed, such as the disunity of tax laws between inner and foreign enterprises, unfair burden of tax and ambiguity of tax subject. All these made collection and management of revenue more and more delicacy. Conflicts and contradictions often appearbetween revenue enforcement and protection of taxpayer's rights and interests. So, we must fasten the pace of reform of enterprise income tax system to solve problems of law system.The focus cared by society and enterprises at large is how to acclimate changed social economy environment and steadily promote the reform of law system of enterprise income tax. Now international economic rules are more and more followed in our country. The reform of marketing economy system is still deepened. According to the guideline of tax reform "simplifying tax system, widening the range of taxes, lowering the ratio of tax and tightening the collection and management" advanced in the 3rd session of 16th plenary meeting, on the basis of unified the inner and foreign enterprise's income tax system, we should fix rational ratio of tax and program the basis of tax. We should confined tax obligors again according to current relevant laws and reform relevant tax categories to set up a standardized, concise, easy to operate and unified legal person income tax system. By achieving these goals, we can create a fair competition revenue environment for enterprises and accelerate the healthy development of our economy. It is the main direction of the reform of enterprise income tax in our country. In this article, author will discuss these problems on following four aspects:Chapter I THE BASIC THEORY OF LEGAL PERSON TAX SYSTEMIn this part, the basic legal connotations of legal person tax system and the constitutes and historical evolution of enterprise income tax in our country will be introduced. The basic status andconstitutes of enterprise income tax legal system will be expatiated. By an analysis to the elements of system such as tax obligors, basis of tax, ratio of tax, favorable revenue and management of collection and the condition of system operation, author points out major problems existed and its representations, they are as follows: different income taxes for inner and foreign enterprises fall short of the WTO principle of fair competition and national treatment; there are ambiguity of tax subjects and flaws in the collection and management of tax; unbalanced favorable policies of inner and foreign enterprises violate the principle of fair burden of tax; the tax deduction items and the way dealing with assets are irrational, waiting for the unification of regulations; the diversities of practical burden of tax is too much and the setting of tax ratio is not scientific decision. All these problems make enterprise income tax unsuitable to t...