The Study On Impact Of International Tax-Competition For FDI

In this paper we studies how CIT inpact on FDI in the context of International Tax competition.With the continuous increase of foreign direct investment,the importance of FDI to the national economy has gradually increased,tax competition among countries to acquire more international capital is also intensifying.As the main tax that affects capital flows,CIT is one of the most commonly used means of international tax competition.In the new round of international tax competition,we must understand the current trend of international tax competition and the mechanism of tax competition policy that affects the international capital flows,and use this as a basis to adjust China's tax policy accordingly to obtain more international flowing resources and occupy a favorable position in the competition.Firstly,this paper introduces the related concepts of international tax competition,then introduces the basic situation of tax competition in the world by analyzing the current trends of international tax competition.The theory of capital cost provides a theoretical basis for the analysis of economic effects generated by tax competition policy,and explains the influence of international tax competition on the effectiveness of tax policy through game theory.This paper quantitatively analyzes the influence of tax burden change on FDI under the background of international tax competition through empirical model,and introduces the“tax burden deviation”indicator to illustrate the tax policies of other economies in the context of tax competition can affect a country's FDI.After that,this paper returns to China's foreign direct investment.By analyzing the impact of China's CIT policy and US tax competition policy on China's foreign direct investment,verifies the viewpoint of the previous chapter and concluded that China needs to adjust its tax policy to cope with the current international tax competition environment.The conclusion of the environment.Finally,this paper makes a comprehensive analysis of China's tax policy and international competition environment through SWOT analysis in management,and puts forward policy recommendations.This article is divided into five parts:The first part expounds the inevitability of international tax competition and the importance of studying this issue in the context of global trend of reducing CIT,and reviews the existing research in this direction at home and abroad.The second part introduces the related concepts and basic trends of international tax competition.Firstly,defined the concept of international tax competition,and proposed FDI as an indicator to measure international tax competition.Explain the inevitability of international tax competition and its positive and negative effects.Take the major economies as an example to illustrate the current basic trends of international tax competition.The third part studies the mechanism of the impact of CIT on FDI in the international tax competition environment from both theoretical and empirical aspects.This part analyzes the tax factors and main taxes that affecting FDI.This conclusion is divided into two levels in the theoretical part.Firstly,it analyzes how income tax affects FDI.Secondly,from the perspective of tax competition,this paper analyzes the impact of two forms of competition on the effectiveness of income tax policy.In the empirical part,this paper makes regression analysis on developed countries and developing countries respectively,and draws the influence of various factors on FDI in different economies.Demonstrate the objective fact that in tax competition you should move forward,or you'll fall behind.Then illustrates the necessity of adjusting CIT tax policy in China.The fourth part studies the basic situation of FDI in China.This part divides China's FDI period into three stages,and analyzes China's taxation policies of three different stages.This paper compares the differences between China and the United States and the United States in the FDI growth cycle,and draws the conclusion that there is competition between the big countries introduced by FDI,then analyzes the impact of specific US CIT policies on China's FDI flows.The fifth part analyzes the advantages and disadvantages of China's current CIT system under the international tax competition environment.On the basis of this,this paper puts forward the strategic principles and specific policy suggestions for China's next reform.