The Effects And Optimization Of Tax Incentives For FDI

Since its reform and opening up, in order to remedy the inadequacies of its capital, China has successively enacted a series of tax incentive policies in purpose of attracting foreign investment to attract a lot of foreign investment effectively and successfully. But in recent years, as its economic situation and investment environment change, China's foreign investment tax incentives appeared relatively lagging state, so the foreign tax policy reform has been put on the agenda. Therefore, it is necessary to carry out serious theoretical analysis on tax incentives and demonstrate the effect of China's policy of tax incentives to attract foreign investment so as to re-examine the foreign-related tax policy practice and to provide a reliable theoretical basis and decision-making reference for the current policy adjustments.Based on the review and comment on the literature, this dissertation analyzes the effects of tax incentives on foreign direct investment (FDI). Combining with China's implementation of tax incentive policies, this dissertation points out the problems in the implementation of the policies and analyzes the effects of China's tax incentive polices through the empirical analysis. On the basis of comparing tax incentives from abroad, this dissertation points out the problems of China's foreign-related tax policies and further optimize the basic ideas of China's polices of tax incentives.The full text is divided into six chapters to explore the related problems on three levels of theoretical research, empirical analysis, and polices.The first chapter is part of the introduction to this dissertation. This chapter mainly introduces the topic, background and significance, the scope and framework of this research, and the methods, ideas, innovation and the significance of the research results. The second chapter is part of the literature review of this dissertation. This chapter concludes and analyzes both the foreign and domestic literature and analyzes and evaluates these research scholars on that basis. Chapter three introduces the concepts and tools of tax incentives, and then gives a theoretical and empirical analysis of the tax incentives on FDI. On the basis of borrow ideas from the predecessors and improve the analysis methods and indicators, chapter four gives a theoretical and empirical analysis of the tax incentives on FDI in location structure and FDI in industrial structure. The fifth chapter Combines with China's specific situation and makes an extensively analysis on the profit and cost of tax incentives. The last chapter analyzes the current problems of China's tax incentives for FDI and then puts forward the corresponding countermeasures and suggestions.Under China's current economic development and the need to attract investment and strategic adjustment, this dissertation holds that China's foreign-related tax adjustment of the basic policy orientation is not a simple question of reservations and cancellations but insists on the "two tax integration", takes serving the strategic goal of attracting investments as China's basic purpose and takes the improvement of the quality of the utilization of foreign investment as its core to attract investment and the quality of foreign investment-oriented tax incentives system through a gradual adjustment of the way. Foreign-related tax policies should serve the strategic adjustment of China's investment attraction, reflects the needs of improving the quality of the utilization of foreign capital and establish a clear target of industry tax incentives system and regional tax incentive system through scientific tools of choosing tax incentives.