Research on the Structure of China’s Enterprise Income Tax Law System

Wang Yin-Ying

doi:10.4236/blr.2011.22007

Abstract

The PRC enterprise income tax law was enacted on January 1, 2008, with accordance to which the enterprise income tax law system has been changing. It took a long time to promulgate the law just as it takes and will take certain period to integrate the system from the constitutional law to tax polices. The lack of taxing power under constitutional law, the silence of a basic tax law, and the arbitrary of tax policy issuance lead to an unstable structure of enterprise income tax law system. Lawmakers shall announce the taxing power under the constitutional law, form a general tax law, and take time to screen tax policies to improve the system.

Highlights

Corporate income tax is a tax imposed for each taxable year on the taxable income of every corporation [1]
The PRC enterprise income tax law was enacted on January 1, 2008, with accordance to which the enterprise income tax law system has been changing
The term China adopts for the corporate income tax is “enterprise income tax”, and it named the new law promulgate in 2008 the “Enterprise Income Tax Law of People’s Republic of China”

Summary

Introduction

Corporate income tax is a tax imposed for each taxable year on the taxable income of every corporation [1]. Have great efforts been made to fill the blank of enterprise income tax law field such as the EIT Law was promulgated in 2008, and regulations and rules have been expelled or organized to meet the WTO requirements, for instance, the State Administration of Taxation issued two notices to screen enterprise related tax rules, one in the year 2006 [10] and the other in 2008 [11], especially the second notice because the EIT law was enacted so that old policies under old laws could not be applied anymore. When the taxing power is announced under the constitutional law, a basic tax law is made, and tax rulings are simplified and consistent, the disproportionate layer of enterprise income tax law system will be fixed

Taxing Power under the Constitutional Law

The Making of a Basic Tax Law

The Screening of Tax Policies and Rulings

Suggestions of Restructuring the System