Study On The Effect Of Preferential Corporate Income Tax On Independent Innovation In China

With the rise and rapid development of knowledge-based economy,scientific and technical innovation has become the key factor of promoting thedevelopment of world economy. The ability of independent innovation as acore measure of a country’s comprehensive national strength have arousedthe concern of countries in the world day by day.How to improve the ability ofindependent innovation to enhance the core competitiveness of nations andenterprises has become the basis for national policy-making. Among them,corporate income tax policy as an effective national macro-control tool hasaroused concern of the governments. How to make full use of corporateincome tax policies to support China’s independent innovation has become anurgent need for further studies.This paper uses empirical analysis and theoretical analysis methods as acombination, to deeply study the effect of China’s preferential corporateincome tax policies for independent innovation. First it sets out the theoreticalbasis of the corporate income tax to support independent innovation.Secondly,it gives a comprehensive analysis of the status quo of China’s independentinnovation and the promotion of independent innovation of China’s enterpriseincome tax preferential policies. From both empirical and theoretical depthanalyse the impact of our income tax preferential policies on the innovationtheory, and then put forward ideas and suggestions to perfect China’senterprise income tax preferential policies promoting independent innovation.The main conclusion are as follows:First, it concludes from the four aspects of enterprise income taxpreferential policies, that is sub-tax relief, tax deductions, accelerateddepreciation and investment credits and finds the following issues: thecurrent enterprise income tax policies are fragmented and lack system andnorm; and they neglect to support the transformation of scientific andtechnological achievements, benefits form is single and mainly directpreferential oriented. Second, through the establishment of models, from the empirical angle,analyse the impact on innovation caused by China’s enterprise income taxpreferential policies, come to the conclusion that China’s enterprise income taxpreferential policies affect the ability of independent innovation positively; andfrom the theoretical angle, study the enterprise income tax preferential policies’effect on independent innovation, and analyse the effect of various means taxconcessions on independent innovation.Thirdly, based on the analysis of theory and the status quo and accordingto the results of real example analysis, it puts forward ideas and suggestions toperfect China’s enterprise income tax preferential policies which promoteindependent innovation, so that the policies made by the government will bemore obvious and more efficient.