China Summary Of The Consolidated Tax System

The Coalition and Consolidated Tax Payment System in China has experienced 16 years of development. Upon the implementing of the "Enterprise Income Tax Law" On January 1 2008, the determinant standard for income taxpayers will be changed to the'legal person'under the legal person income tax system. Which provide ever dramatic changes and progress of the Coalition and Consolidated Tax Payment System. However, there are many specific problems still, about the system design and implementation etc. In-depth study and solution of these problems in order to ensure the smooth implementation of the new tax law is critical, and also the purpose of writing this article.This paper has five chapters:The first chapter: Make a definition and distinction of consolidated ratepaying and coalition ratepaying under the system of the Enterprise Income Tax Law. On the basis of that, recalling the development of this system in China, and summarizes the relevant provisions of the new law.The second chapter: Research on the implementation necessity and probability of the Coalition and Consolidated Tax Payment System. Ascertain the merits of this system, such as, consistent with China's industrial policies, conducive to the development and international competitiveness of our enterprise groups, helpful to improve the quality of tax collection and management, consistent with international practice and trends of modern tax development etc.The third chapter: Evaluate the existing system by institutional analysis. Analyze the revolution and improvement of the Coalition and Consolidated Tax Payment System, under the system of the new Enterprise Income Tax Law.The fourth chapter: Identify the problems existing of the system through objective analysis. Such as, the departure of tax revenue and tax sources, causing inter-regional tax competition, collection and management system problems, backward technology, issues on the nature determination of the system. The fifth chapter: Specific to the problems, bring forward some policy recommendations to improve this system: Improve the allocation method of the coalition ratepaying, broaden the access conditions of the consolidated ratepaying, implementing the Filing System and the Examination & Approval System, and recreate the complementary-interactive regulatory mechanisms. Expect the system to the most effective, and a reference value to the tax reform of China.