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China’s Enterprise Income Tax Proportional Tax Rate System Reflection And Correction

Posted on:2023-07-11Degree:MasterType:Thesis
Country:ChinaCandidate:J J WangFull Text:PDF
GTID:2556306629459784Subject:Law
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Enterprise income tax is an income tax levied on the production and operation income and other income of enterprises and other income earning organizations in a country.It is one of the most important sources of a country’s financial revenue.How to determine how much tax an enterprise should pay to the state and how much property it should retain for itself is the thing that needs wisdom and caution most in the world.Because when the income is certain,the enterprise’s tax is light,the profit is thick,and the tax is heavy,the profit is thin,which promotes or hinders the enterprise’s initiative and enthusiasm to create wealth,making the national fiscal revenue increase and become rich or reduce and fall into poverty.As early as the end of the spring and Autumn period,Confucius put forward the tax thought of "not suffering from oligopoly but inequality",which is also the guiding ideology of modern wealth distribution.We should not only pursue formal justice,but also pay attention to substantive justice.However,in China’s current enterprise income tax law,in addition to the proportional tax rates of 20%,20%and 15%respectively for non resident enterprises,small low profit enterprises and high-tech enterprises,the proportional tax rate of 25%is uniformly applied to all other resident enterprises accounting for the vast majority of enterprises(this paper mainly studies the latter kind of enterprise income tax rate).This kind of accurate taxation in proportion to wealth is unfair.Because it does not consider many differences in the scale,business scope,scientific and technological innovation,business ability,natural and social environment for doing business,the cost of acquiring wealth and the use value of wealth,nor does it consider the differences in the observance of discipline and law,honesty and credit,accumulating morality and doing good deeds,and fulfilling social responsibilities.The number of Chinese enterprises and the complexity of the situation faced by various enterprises are probably the largest in the world.China is bound to fall into the "one size fits all" form of justice.The academic research on the proportional tax rate of enterprise income tax law is also mostly limited to notes or tax preferences,pre tax deduction and so on,and there is little research on the implementation of excess progressive tax rate on enterprise income.It is of great theoretical and practical significance to reform China’s tax system,including the enterprise income tax rate system,in accordance with the principle of "unifying the tax system,fair tax burden and promoting fair competition" established in the decision of the CPC Central Committee on several major issues of comprehensively deepening reform issued by the third plenary session of the 18th CPC Central Committee.China’s enterprise income tax law should establish the legislative purpose of "fair tax burden and promoting fair competition".The lack of legislative purpose of the current enterprise income tax law hinders the research of tax law and tax practice.The value of"fairness" should be brought into the legislative purpose and applied to the formulation of specific provisions and tax procedure law at the same time.The enterprise income tax rate system should give priority to substantive justice and take into account formal justice.If only formal justice is achieved without substantive justice,or if formal justice is only concerned with substantive justice when the two are in conflict,it will seriously damage the fairness of the tax system and erode the people’s trust in the tax system.Formal justice and substantive justice should be unified,and the priority of substantive justice should be guaranteed,even if it is not completely unified.The Enterprise Income Tax Law should formulate a preferential tax rate system to encourage enterprises to innovate in science and technology.Science and technology is the core competitiveness of the country,and enterprises are an important force in scientific and technological research and development.Due to the high investment in research and development and high risk,the development of science and technology enterprises is difficult.The state should increase its support,implement low-grade tax rates,and exempt them from taxation during the research and development period and market development period.The Enterprise Income Tax Law should establish a care tax rate system to protect small and medium-sized enterprises.The development of small and medium-sized enterprises helps to ensure employment and contribute to scientific and technological innovation.In practice,small and medium-sized enterprises have many difficulties in production and operation,financing is difficult,financial subsidies are small,and tax incentives lack stability.Small and medium-sized enterprises should implement low tax rates in their initial stages,and after they grow in scale,they should be restored to a general tax rate to "feed back" the country.China’s enterprise income tax should implement excess progressive tax rate.Compared with proportional tax rate,progressive tax rate can more comprehensively take into account the differences between enterprises;Compared with the full progressive tax rate,the excess progressive tax rate has a smaller burden and can better take care of small,medium-sized and micro enterprises.When implementing the excess progressive tax rate,we should also consider the differences in the business environment and business stage of the enterprise,and make the taxpayer bear the tax burden suitable for the tax paying ability through a reasonable tax rate system.
Keywords/Search Tags:Enterprise income tax law, Tax rate system, Substantive justice, Formal justice, Excess progressive tax rate
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