Sino-british Enterprise Income Tax In The Tax Law Elements Of Comparative Study

Regarded as a 'good tax', the corporation tax is levied on the net income of a company. Corporation tax boasts of tax neutrality, which is an unrivaled advantage over other taxes. It was introduced into China in 1930s and has now become a major one in the whole tax system. As time passes by, it will surely do what an 'automatic stabilizer' does in an economy. Therefore, it becomes a necessity for us to improve or restructure the corporation tax system and make it fit for the economic needs. Each element of the corporation tax will be involved during the improving or restructuring.Corporation tax is targeted for fairness and efficiency. Through a comparison between the Chinese and the British corporation tax systems, the author concludes that the British system tends to emphasize particularly on fairness and the Chinese system on efficiency.In effect, China is faced with an unsatisfactory situation: the market economy is under development, the market mechanism to be perfected, the resource allocation to be optimized, and many a small company trying to survive the 'financial storm'. In the future, we should forget neither of the targets of fairness and efficiency. Instead, we'd better balance the both targets while considering the tax compliance of the people, the administrative costs and the tax burdens.For a more level playing ground, a more efficient tax system and more optimized resources, some of the practices in UK can be introduced into China, e.g., the small company relief, capital allowances, etc. Meanwhile, we shall lay more emphasis on fairness than before in order to promote a peaceful society in China.