The Chinese tax system has recently developed closely to the economic growth of the country. The entry of China into the World Trade Organization (WTO) and the economic boom that has characterized recent years have made clear the necessity of overhauling a regulatory system in order to provide stability in the administration of the country, even in the tax field. The desire of becoming a leader in the Asian region, keeping up with the major world powers, has led China to make numerous amendments to improve the tax system and make it adapt to the rapid expansion of the economy and, at the same time, to attract an increasing number of foreign companies. As a result, a significant tax system overhaul was achieved on March 16, 2007 with the enactment of the Enterprise Income Tax Law, which then came into force on January 1, 2008. The new scheme joined together two systems of corporate income tax that were previously separated, the Domestic Invested Enterprises and the Foreign Invested Enterprises. The main purpose of the reform was to standardize tax treatments for foreign and local companies, removing privileges for foreign companies and formulating new tax legislation in harmony with Occidental laws.