China Joined WTO And Review Of Tax Benefit Policies

Our current tax preferential policies have been pursued for over twenty years since China first embarked on reform and open-door policy. The policies are used to attract foreign investments and have brought out positive effect. However, disadvantages and even contradictions appeared gradually within these policies. This paper firstly analyses these problems behind the policies. Then it explores any difficulties encountered and the effects come out. The tax preferential policies of our country are being challenged due to China's entry into World Trade Organization ("WTO"). This is because WTO requests all its members to comply with its regulations. There are disagreements between WTO's regulations and the tax preferential policies of China. This paper describes the WTO's regulations. Then it compares the WTO's regulations with our tax preferential policies so as to analyse their similarities and discrepancies. The successful experience of other places should be used as reference in order to improve the tax preferential policies in China. Therefore, this paper takes United States and Hong Kong as targets for study and analyses the characteristics, measures of their tax preferential policies as well as their achievement gained. At the end, this paper suggests the way of development of tax preferential policies in our country under the consideration of WTO's regulations and the tax preferential policies of the United States and Hong Kong.