China's Inbound Fdi Capital Gains Marginal Effective Tax Rate Calculations

As the focus of attracting foreign direct investment has been shifted towards quality and the industry structure, the arrangement of related tax system plays a more important role today. Effective marginal tax rate (EMTR) is widely used as a measure of the marginal tax burden for transnational investment. This thesis focuses on the measurement of effective tax burden on China's FDI inflow during the past five years as well as the structure of the FDI tax system. We also examine the impact of Enterprise Income Tax Reform for foreign enterprises. Also, the effective tax rate on manufacturing FDI inflows from sixteen developed or neighboring economies are compared and analyzed. We fully consider the specific background of China's tax system to make some improvement for our EMTR model measurement, and finally give our policy suggestion based on the model results.