Problems and Suggestions of Business Tax System in Taiwan and Mainland China

• Main Authors: Chao-Chieh Tai, 戴昭杰
• Other Authors: 吳朝欽
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/25493645067206596343

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.