Introduction to the integration of two taxes, what is the integration of two taxes?

The integration of the two taxes refers to the unification of the two laws and regulations, the Provisional Regulations of the People's Republic of China on Enterprise Income Tax and the Law of the People's Republic of China on Income Tax on Foreign-invested Enterprises and Foreign Enterprises, into one income tax law, which treats domestic and foreign-funded enterprises equally in terms of tax rates and other aspects.

Relevant studies have also shown that the integration of the two taxes should mainly include: the unified implementation of the corporate income tax system.

Corporate income tax is levied on enterprises with legal personality, and individual income tax is levied on sole proprietorship enterprises and partnership enterprises without legal person status.

The advantage of implementing the corporate income tax system is that it is convenient for taxpayers and their tax liabilities to be determined, and the income tax can cover the economic activities of the whole society. Danhu wheel.

Unified tax rate, taking into account the current tax burden of domestic enterprises and the development trend of income tax worldwide, simplifies and merges the current many income tax rates, and uniformly implements a medium and low proportional tax rate.

The unified tax base fully reflects the labor compensation, capital compensation, technical compensation and risk compensation for those who pay taxes. Unify preferential tax policies, incorporate tax incentives into budget control, and implement tax-style expenditures.

It refers to the unification of the two laws and regulations into one income tax law, which treats domestic and foreign-funded enterprises equally in terms of tax rates. The integration of the two taxes refers to the unification of the two laws and regulations, the Provisional Regulations of the People's Republic of China on Enterprise Income Tax and the Law of the People's Republic of China on Income Tax on Foreign-invested Enterprises and Foreign Enterprises, into one income tax law, and treats domestic and foreign-funded enterprises equally in terms of tax rates.

In ancient times, it refers to the two land taxes that began to be levied in summer and autumn from the Tang Dynasty. Modern mainly refers to the "two taxes" of domestic enterprise income tax and foreign-funded enterprise income tax.

During the period of Tang Dezong, Prime Minister Yang Yan created a two-tax system, the core content of which was: "The cost of all the old emperors, the collection of one penny, the first measure of the number and give it to others, and the amount of money to make the system." There is no owner or guest in the household, and the residence is the book; There is no one to serve the banquet rock, and the rich and poor are the ......The tax of residents is levied in autumn and summer, and those who are inconvenient are correct.

Its rent is miscellaneous and provincial, and the amount of Ding is not wasted, and the declaration is auspicious and rushes in and out as old."

The two taxes refer to the income tax of domestic and foreign-funded enterprises. Because, at this stage, foreign-funded enterprises have greater preferential income tax, which is already a super-national treatment. Including various tax incentives, the deduction of expenses is more relaxed than that of domestic enterprises, so domestic enterprises have strong requirements for the integration of the two taxes.

However, there is also a great deal of opinion on the reluctance of foreign-funded enterprises to give up vested interests. So it hasn't been settled!

Lou Jiwei, executive vice minister of the Ministry of Finance, said that the reform of enterprise income tax and the transformation of value-added tax will be accelerated in the near future, especially the merger of the income tax law for domestic and foreign-funded enterprises announced by the National People's Congress to be deliberated in August. At present, the Ministry of Finance has begun to enter the process.

Lou Jiwei disclosed this information at the 2006 annual meeting of the China Development Forum. He said: At present, although the per capita share of natural factors of production, such as land, water, water surface, and mineral resources, is very low, the phenomenon of waste is very serious. One of the important reasons is that the ** of natural factors of production is much lower than the cost of sustainable use.

In response to this problem, the Ministry of Finance will focus on institutional innovation in relevant fields, form a channel for the normal flow of various factors of production, and let the market better play the basic role of resource allocation.

Lou Jiwei said that one of the means is to speed up the reform of the tax and fee system, quantify the right to use resources into the tax and fee system, straighten out the natural resources, ease the constraints of resources, and improve the unfair distribution of income caused by unreasonable occupation and use. The second means is to further improve the system of public services, including the national education system, public health and basic medical care, and social security systems, so as to promote the rational flow of labor elements and the improvement of quality. In this process, fiscal spending will be further tilted towards rural areas.

Lou Jiwei also said that China's public financial framework has been initially formed, and the basic financial capacity of all localities tends to be balanced.

According to reports, in 2005, the transfer payment to the local government reached 733 billion yuan, equivalent to the times of 1994, with an average annual growth rate of 2 8%.

Lou Jiwei said: The allocation of funds for fiscal transfer payments is mainly for the central and western regions. In 2005, the central and western regions accounted for about 88 per cent of the transfer funds to local governments.

The content of two taxes and one fee refers to the general term of business tax, urban maintenance and construction tax and education fee surcharge.