One-man Company Income Tax In China Legal System

The Amendment of "The People's Republic of China Company Law" in 2005 has been a major breakthrough in the company forms, officially introduced the one-man limited liability company, shortened as one-man company, to the company forms. At present, most countries in the world has introduced one-man company into their Company Law. Along with the social development and economic progress, one-man company is a combination of the limited liability of a company and the investment flexibility of one shareholder. After that, scholars focus more on its particulariry, the significance of its appearance, and its impact on the actual investment choices, etc. Very few people study one-man company from the perspective of the income tax system. In 2007, the Amendment of "New Company Income Law" emphatically conducted an unification between "foreign enterprise income tax" (shorten as "FEIT") and "domestic enterprise income tax", but did not make specifications for this special company form, i.e. one-man company. But the reality is that, under the current tax law, the tax on one-man company is the same as limited liability company and Company Limited, that is to say, besides the company's corporate income tax, as one natural person shareholder of one-man company, the allocated company's profits by 20% is levied as personal income tax. This resulted in the economic dual taxation on one-man company's shareholders. It has also become the starting point of this thesis concerned legal issues on this income tax of one-man company.Based on the sociological, economic, and law dimensions, the first section in this thesis elaborates the necessity and inevitability of the company's income tax respectively. Next reviews the development history of company's income tax system in China, and then introduces the characteristics and theoretical disputes of the company's income tax. The status quo of income tax of China's one-man company and its reflection are discussed at last. Then gives a survey on the general mode of regulation of the ecomonic dual taxation held by the worldwide scholars in the current tax law field. Then a list of practical experiences in other countries and regions are briefly summarized and comparatively analyzed. The last is devoted to deal with problems of the improvement of the legal system as to one-man company's income tax, mainly including the pracitcal improvement of its law system, the long-term option of one-man company's income tax, its tax escapism, tax preferences and so on.The present thesis is mainly a qualitative study in which such research methods as historical analysis, empirical analysis, etc. are employed. The thesis is conducted and verified not only from the perspective of the tax law and company law, but also learned from some knowledges of the tax, economics and other related disciplines. The innovation of this thesis lies in the following three aspects:first, it provides a comprehensive analysis of the problems existed in China's one-man company's income tax; second, it puts forward the actual solutions and long-term options drawn on the relevant experiences in foreign countries; third, the solutions about tax escapism, tax preferences and other issues are discussed.