In context of the tax systems with dividend income double taxation,first of all,the article analyzes the theoretical modes of this tax system,and it makes a comprehensive contrast between the advantage and disadvantage of deferent modes.

Advance Pricing Arrangements(APA) helps resolve the problems of transfer pricing abuse and double taxation or double non-taxation,thus the tax department can improve their working efficiency.

By modeling optimal income taxation in different ways of avoiding double taxation,we analyze optimal government revenue function and get corporate income tax policy in tax competition equilibrium.