The Impact Of New Income Tax Law To Hunan Economic And Countermeasure

After a thousand entreaties, "People's Republic of China Enterprise Income Tax Law" has finally passed during the Tenth National People's Congress at its fifth meeting. And it has put into effect on Jan 1, 2008. The new enterprise income tax law incorporated the former "Enterprises with Foreign Investment and Foreign Enterprise Income Tax Law" with "Interim Regulations on Enterprise Income Tax". Compared with the old Income Tax Law, great changes have taken place. Such as the tax rate has dropped to 25%, the tax Tax-oriented has changed from the Regional-based preferences to industry-based preferences and a unified standard tax deduction has been established. As an important fiscal policy, tax policy is often used to carry out the economic macro-control. As the Corporate Income Tax occupies an important status in our tax system, income tax policy adjustments is bound to bring a certain degree of impact to the country's economy, so did Hunan. However, due to the difference provinces has its own unique economic development environment, the level of economic development is different, scope and extent of the impact is not the same.This paper studies that how the enterprise income tax change will affect the Hunan economy and what measures we should take. Under the restricted space and level, I can not conduct a comprehensive analysis of the influence but for key analysis. This article has been selected three areas of the economy in Hunan—Investment, Industrial structure, the progress of science and technology. Analysis focus on the change of income tax law will affect the investment of Hunan, the industrial structure of Hunan, The progress of science and technology of Hunan. I did theoretical analysis from the beginning. Then a case study is given to validate the methodology. If the results consistent with the theory, we should Analyze the range and the degree. If not, we should get the reason for this result. Finally, on the results of the analysis put forward countermeasures. In this paper, the conclusions and countermeasures for better economic development in Hunan have some practical significance.