Study on Chinese corporate tax burden in international tax competition

According to traditional international tax theory, countries would lower tax rates or narrow tax base in order to attract mobile capital under international tax competition pressure. Such "harmful tax competition" would bring a "race to the bottom" in capital taxation in an era of economic globalization. In this paper, we present empirical analyses of corporate tax burdens in international tax competition. First we discuss proper measures of corporate tax burden, and then we calculate the average tax rates of Chinese enterprise tax. International comparison study is also processed to indicate the characteristics of Chinese corporate tax burden and the international tendency.