The Old And The New Enterprise Income Tax Law And Tax Adjustments

The Law of the People's Republic of China on Enterprise Income Tax came into effect as of 1 January 2008. Enterprise will face a great impact from the new Income Tax Law. This article compared the material difference between the old and new Income Tax Law and analyzed the impact on taxable income and payable tax. At same time, this article also compared the material difference between the new China Accounting Standard and new Enterprise Income Tax Law and analyzed the impact on the adjustment of taxable Income.There five part of this article.In part one, this article introduced the background of enterprise Income tax law legislation, overviewed the movement of enterprise Income tax law legislation and summarized the characteristic of the new Enterprise Income Tax Law.In part two, this article compared the material difference of taxpayers, tax obligation, tax rate, taxable Income, income, donations, tax offset, exempted or reduced tax, preferential tax rate, tax withheld and special tax payment adjustment under old and new Income Tax Law, some case study being involved.In part three, the impact on taxable income and payable tax was concluded according to the analysis in part two.In part four, this article compared the material difference of accounting element, inventory, long-term equity investment, investment property, fix assets and intangible assets, some case study being involved.In part five, the impact taxable income adjustment was concluded according to the analysis in part four.