China And South Korea Preferential Tax Policies For Comparative Study

As one important component of a country's economic policy, tax policy is not only the main means for a country to raise its fiscal revenue, but also one of the important methods for the country to carry on its macro adjustments and control its economy. It can solve the problem of market failure from many aspects, and also influence and promote the economic growth and development. Being one component of tax policy, the tax preference is an important lever which one country usually utilizes so as to adjust and control its economy. Studying the theme of tax preference has important theoretical and practical meanings. According to a country's political and economic development goals in one regular period, tax preference means exempting or reducing the tax burden level of some specific taxation target, taxpayer or tax district on the basis of the country's confirming its macro tax rate and its distribution of tax burden. Thus, some specific districts, industries, enterprises and business can be encouraged, or some taxpayers who have practical difficulties can be preferentially treated. And therefore, the country's macro goal of its economic policy can be well realized. Compared with other tax policies, the preferential tax policy directly reflects one country's macro adjustments intention to its economy.Since the reform of opening-up, China has set up a set of tax systems which is basically progressively adapting to the Chinese socialist market economic development. It also has implemented a series of preferential tax policy to some related districts, industries, enterprises and products in accordance with the requirements of its national economic development strategy, area development pattern, industrial structure and technology advancement. Nowadays, China has built up a tax preference pattern which is playing some active role in stimulating investment, promoting technology progress and optimizing industrydevelopment, etc. But meanwhile, there are a great deal of questions of the Chinese preferential tax policy which needs further research and completion. Korea is one of the countries in the word which have successfully utilized preferential tax policy to promote the native national economic development.In the past short decades, Korea became one member of the "Four Little Dragons" of Asia and ranked among the countries with high speed of economic development. It had important thing with the role of the Korea's past tax policy, especially the role of its preferential tax policy. There are many good experiences that can be drawn and learn by China. This essay aims at comparing the Chinese and the Korean preferential tax policies and trying to find out differences between them and some Korea's good experiences. At last, it introduces some author's views and suggestions concerning optimizing and completing the preferential tax pattern of China.This essay uses normative analysis method and positive analysis method and combined them mainly. It lays particular emphasis on comparative analysis and qualitative analysis. The concrete structure is arranged as follows:First partIt is generally analysis to tax preference theory. It mainly states the meaning, characteristics, and functions in detail. At the same time, it deeply and systematically relates the theoretical foundation of the preferential tax policy that is the reason why the policy is used extensively among our real life.Second partThis part focuses on introducing the current Chinese and Korean preferential tax policies by the research method of positive analysis. It firstly carries an a brief retrospect to the evolution of China's tax preference, then goes on the research of the focal point and recommend to the pattern of China's current tax preference and its concrete content. Besides, it introduces the current Korean preferential tax policy situation especially the parts of absorbing foreign investment and encouraging the technology progress.Third partThis part compares the general characteristics, policy goals, suitable targets, tax preference structures, tax...