As the rapid development of economic globalization and implementation of polices ampng Mainland China and Taiwan, the reaction and transaction of economics and trade among them are more and more frequent and prevalent. Because ofthe lower-salary laborers and abundant resources in Mainland China, businessmen in Taiwan head for China one by one to invest. Besides, Mainland China offers plenty of rewards and bonuses for investing. In order to let investors realize the differences ofthe business tax and special measures among the Cross Taiwan Strait, I will compare?The Practice Ordinance of Business Income Tax Law for Foreigner Invested Businesses in PRC" and other laws with? Taiwan Income Tax Law" and other laws.
After the economic reformation in 1980s, China constantly revises the systems of tax and related laws and increases more bonuses. Besides the whole reformation of tax happened in 1994, China have been planned to adjust laws inn order to participate in WTO recently. In addition, China even announces the draft of integration of income tax that unites the tax rate among the domestic and foreign income tax. for the equity. After Taiwan joins WTO among the Across Taiwan Strait, the development of economics and trade also creates the brand-new world; therefore, observing correctly the variation of economics and trade and mastering accurately the differences of the tax system and bonuses among Mainland China and Taiwan not only help people to decide to invest, but also assist the government to revise the income tax. in the future for matching up the close relationship of the economics and trade and the trend of the development in the future.
