Adjustment of Foreign Taxation Policy Under the New Tax Reform

In 2004,China begins its new large-scale tax reform.Foreign taxation policy will adjust a lot to keep pace with the changing economic situation.This paper,based on an analysis of the existing policies on foreign taxation,puts forwards that our domestic enterprises have more burden than foreign companies,and the existing policies make a loss on the fiscal revenue,and they are unclear in the guidance of the industrial structure,and they cause area developing imbalance to some degree.This paper also makes some proposals about adjustment of current policies concerned such as the unification of all kinds of enterprises,changing tax incentive from area tax incentive to sector tax incentive,and improvement of legislative hierarchy on the corresponding foreign tax policies.