Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2013.1364.1369ChangLi-Hua DengHou-Ping TanLi-Xia JonesDavid A. 82013138The selection of credit limit methods is a very important
issue in international taxation but there exist some theoretical errors in the
present literatures. Applying modeling, simulation and rigorous mathematical
derivation the tax effects of the comprehensive limit credit method and the
line-state limit credit method were compared. It was discovered that whether
the comprehensive limit credit method is superior, equal or inferior to the
line-state limit credit method depends on the combination of the types of its
overseas branches. The results are much complicated than the general conclusion
of the present literatures and indicated that the line-state limit credit method
does not ensure the fiscal revenue. It was suggested that Chinese tax credit
system should change from the line-state limit credit method to the comprehensive
limit credit method.]]>Brumbaugh, D.L. and J.G. Gravelle,20072007Cai, L.Z.,20022002Cai, L.,200714256279Li, H.,1997102628Li, Z.H.,2006Liu, J.W.,2000pp: 103pp: 103Liu, L. and D.F. Zhao,201171115Lun, Y.,200864043Lv, H.,20042004Research Group of Shanghai Municipal Office, SAT,201172428Rohatgi, R.,2002Pages: 720Pages: 720Thompson, S.C.,1995Pages: 610Pages: 610Wu, H.,201293940Wu, Z.B.,2002101819Zhan, Z.H., M.J. Zhan and X.R. Chen,201252832Zhu, Q.,2011