| Summary: | 碩士 === 逢甲大學 === 財稅學系 === 101 === The purpose of this study is to compare Taiwan’s Value-added and Non-value-added Business Tax Act with the People&;#39;s Republic of China’s Value-added Tax and Business Tax. We find some common issues of both countries: The definition of small business entities is unclear and tax evasion. Because Taiwan adopts a single low tax rate with a lot of tax free items, the tax basis erosion is serious. Since Mainland China adopts higher multi-level tax rates and value-added tax and business tax runs simultaneously, the double taxation exists.
This research proposes policy recommendations for the common issues of both countries: Unify the identity of small business entities, setting up well-designed auditing system, improving tax law system, adjusting tax structure and tax rates and developing digitalized value-add tax system. For Taiwan, the government should abolish some tax free items and develop a reasonable financial service value-added tax systems. For Mainland China to speed up the reform of the applicable scope of value-added tax and to improve the tactics are proposed.
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