scholarly journals On the Improvement of China’s Legal System of Foreign Direct Investment

2015 ◽  
Vol 8 (4) ◽  
pp. 293 ◽  
Author(s):  
Shu-Xue Jia
Keyword(s):  
Foreign Direct Investment ◽  
Legal System ◽  
Foreign Investment ◽  
Joint Ventures ◽  
Direct Investment ◽  
Local Level ◽  
Company Law ◽  
Operation Duration ◽  
Chinese Company ◽  
Foreign Investment Enterprises

China has not enacted unified foreign direct investment code, and the legal system of foreign direct investment is composed of separate laws and numerous regulations and rules at both national and local level. The establishment of all foreign investment enterprises in China is subject to examination and approval of relevant authorities, only after which enterprises can be registered. The operation duration of equity joint ventures, contractual joint ventures and solely foreign-founded enterprises shall comply with relevant provisions of Chinese laws. The operation duration and disillusion of foreign-invested stock joint limited companies are subject to Chinese Company Law. The 2-track legislation model, under which foreign investment enterprises and domestic enterprises are governed by different laws and regulations, caused conflicts among different laws and difficulties in application of laws. To overcome the defaults China must enact unified law on foreign direct investment.

scholarly journals Eliminating Privileges Enjoyed by Foreign Investors in China: Rationality and Ramifications Under a Unified Tax Code

2007 ◽  
Vol 12 (2) ◽  
pp. 79
Author(s):  
Xiaoyang Zhang
Keyword(s):  
Foreign Investment ◽  
Income Tax ◽  
Tax Law ◽  
Legal Regulations ◽  
Commercial Law ◽  
Foreign Investors ◽  
General Domain ◽  
Long Time ◽  
Income Tax Law ◽  
Foreign Investment Enterprises

<p>The enterprise income tax law in China has for a long time been characterized by the co-existence of two tax codes applied to foreign investment enterprises and indigenous enterprises respectively. Tax privileges granted to foreign investors give rise to the inequality of tax treatment among enterprises in the country. Under the newly released Enterprise Income Tax Law, a unified tax code is to be applied to all enterprises alike, and tax impetus is no longer reserved for foreign investors. This is a move towards developing a platform on which all enterprises in China can compete equally in terms of taxation. A way forward is contemplated over integrating current laws on foreign investment enterprises into the general domain of the commercial law regime, in order that those mutually exclusive legal regulations presently applied to foreign investment enterprises and their local counterparts can eventually be unified in the same way as in the field of taxation.</p>

Impact of foreign direct investment on the restructuring and growth in manufacturing

1998 ◽  
Vol 7 (4) ◽  
Author(s):  
Alena Zemplinerová
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Steel Industry ◽  
Direct Investment ◽  
Firm Level ◽  
Allocation Pattern ◽  
Level Data ◽  
Equity Ownership ◽  
Foreign Investment Enterprises ◽  
Section Analysis

Nation-wide firm-level data are used for the time series and cross-section analysis of foreign direct investment in manufacturing on 2digit and 3digit industries. Dynamics of foreign investment enterprises (FIEs) are computed for the period 1993-1996. The performance of FIEs is compared with the domestic enterprises. Related policy issues ere discussed. <p>Although the share of foreign investment enterprises in the total manufacturing output doubled during the period 1993-96, with 23 % remains relatively low in comparison with Hungary where the respective share in output reached 67 % by 1996. Foreign penetration via equity ownership is low in the industries with excess capacities end need for extensive restructuring such as steel industry or large machinery, chemicals, coke end refinery. Allocation pattern of FIEs differs from domestic enterprises. Foreign investment is more specialised and concentrated than domestic enterprises.

Managerial Autonomy and Tax Compliance: An Empirical Study on International Transfer Pricing

2006 ◽  
Vol 28 (2) ◽  
pp. 1-22 ◽  
Author(s):  
K. Hung Chan ◽  
Agnes W. Y. Lo ◽  
Phyllis Lai Lan Mo
Keyword(s):  
Foreign Investment ◽  
Transfer Pricing ◽  
Tax Compliance ◽  
Foreign Subsidiaries ◽  
Profit Shifting ◽  
Transfer Prices ◽  
Tax Audit ◽  
Foreign Investment Enterprises ◽  
The Impact ◽  
Parent Companies

This paper examines the impact of managerial autonomy on tax compliance in an international transfer pricing context. Specifically, we study whether foreign subsidiaries' autonomy in making pricing and sourcing decisions on intrafirm transfers affect their profit shifting through international transfer pricing. We measure transfer pricing noncompliance in terms of tax audit adjustments made by tax authorities. Based on a sample of 163 transfer pricing audits on foreign investment enterprises (FIEs) in China, we find that tax audit adjustments for FIEs that have autonomy in setting transfer prices or sourcing from outsiders are smaller than those that have their transfer transactions dictated by parent companies.

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