Tax Comparison Between India & China
TERM PAPER
ON
TAX COMPARISON BETWEEN
INDIA & CHINA
IN
PARTIAL FULFILMENT OF THE COURSE
IBLT
BY
RAVI JAIN
MBA (IB)
GSIB, GITAM UNIVERSITY
TO
Prof. R.ANITA RAO
Date: Visakhapatnam
INTRODUCTION
India has emerged as a trading superpower and as an increasing magnet for FDI. Its role in the international economy to this point has been less remarked than the rise and dominance of China but increasingly India will be appreciated for the opportunities it is creating for its citizens, employers and foreign and domestic firms.
Recently, I have been researching on ‘Comparison & Contrast of India & China’. India & China can be compared along many dimensions to better understand the reasons for the disparities in the growth rates, GDP, exports & FDI. A few of the parameters are: * Political Systems * Monetary Policies * Fiscal Policies (Tax Regimes) * Quality of living * Infrastructure Availability * Skilled manpower
In this paper, I make an attempt to compare and contrast the TAX LAWS between India and China. I have made the analysis along the following four tax categories: * Income Taxes and Tax Laws * Tax Exempt Income * Tax Deductions * VAT and other Taxes
REVIEW OF LITERATURE
In “Income Inequality and Progressive Income Taxation in China and India, 1986-2015” by Thomas Piketty and Nancy Qian, the authors evaluate income tax reforms in China and India. The combination of fast income growth and under-indexed tax schedule in China implies that the fraction of the Chinese population subject to the income tax has increased from less than 0.1 percent in 1986 to about 20 percent by 2008, while it has stagnated around 2-3 percent of the population in India. Chinese income tax revenues, as a share of GDP, increased from less than 0.1 percent in 1986 to about over 1.5
ON
TAX COMPARISON BETWEEN
INDIA & CHINA
IN
PARTIAL FULFILMENT OF THE COURSE
IBLT
BY
RAVI JAIN
MBA (IB)
GSIB, GITAM UNIVERSITY
TO
Prof. R.ANITA RAO
Date: Visakhapatnam
INTRODUCTION
India has emerged as a trading superpower and as an increasing magnet for FDI. Its role in the international economy to this point has been less remarked than the rise and dominance of China but increasingly India will be appreciated for the opportunities it is creating for its citizens, employers and foreign and domestic firms.
Recently, I have been researching on ‘Comparison & Contrast of India & China’. India & China can be compared along many dimensions to better understand the reasons for the disparities in the growth rates, GDP, exports & FDI. A few of the parameters are: * Political Systems * Monetary Policies * Fiscal Policies (Tax Regimes) * Quality of living * Infrastructure Availability * Skilled manpower
In this paper, I make an attempt to compare and contrast the TAX LAWS between India and China. I have made the analysis along the following four tax categories: * Income Taxes and Tax Laws * Tax Exempt Income * Tax Deductions * VAT and other Taxes
REVIEW OF LITERATURE
In “Income Inequality and Progressive Income Taxation in China and India, 1986-2015” by Thomas Piketty and Nancy Qian, the authors evaluate income tax reforms in China and India. The combination of fast income growth and under-indexed tax schedule in China implies that the fraction of the Chinese population subject to the income tax has increased from less than 0.1 percent in 1986 to about 20 percent by 2008, while it has stagnated around 2-3 percent of the population in India. Chinese income tax revenues, as a share of GDP, increased from less than 0.1 percent in 1986 to about over 1.5
References: * http://www.worldwide-tax.com/china/ * http://www.worldwide-tax.com/india/ * http://www.indiataxes.com * http://en.allexperts.com/q/Economics-2301/2010/2/Tax-Systems-Development-Quality.htm