Comparative Study On The Impact Of Corporate Income Tax Preference Methods On Enterprises' Technology Innovation Investment

Implementing innovation-driven development strategy is important measure for China's economic development.As the main body of innovation,enterprises play a key role in the implementation of innovation-driven development strategies and the realization of economic development goals.Technology-based SMEs rely on technology as a new force to provide innovation momentum.However,in the process of technological innovation activities,it faced realistic constraints in terms of capital acquisition and risk-taking,so it performed poorly in terms of innovation.In order to encourage firms to invest more on technological innovation,China has formed a tax incentive system based on corporate income tax preference.It is of great significance to study the effect of corporate income tax incentives on the technological innovation input of technology-based SMEs.Based on theoretical analysis,this article will empirically study the influence of two methods of corporate income tax preference——additional deductions for research and development expenses and low tax rates for high-tech enterprises——on the technological innovation investment of technology-based SMEs.First,by using the market failure theory and the cost of capital use,this article expounds the theoretical basis and mechanism of tax incentives affecting technological innovation of enterprises.Secondly,this article focuses on the policy of additional deductions for R&D expenses and lower tax rates for high-tech enterprise,and qualitatively analyzes the changing characteristics and deficiencies of the policies.Then,based on the data of the New OTC Market technology-based SMEs,this paper uses multiple regression methods to empirically study the effect of two tax incentives on the technological innovation investment of enterprises and conduct a comparative analysis.The research results show that the additional deduction of R&D expenses can significantly promote the technological innovation investment of SMEs;the positive impact of low tax rates for high-tech enterprises on the technological innovation of SMEs is not notable;The additional deduction of R&D expenses has a stronger promotion effect on SMEs in non-eastern regions and high-tech industries;low tax rate for high-tech enterprises has a significant promotion effect on SMEs in non-high-tech industries.Finally,combining policy analysis conclusions and empirical test results,this article proposes three suggestions for policy optimization:continue to expand the scope of additional deductions for R&D expenses;further adjust the standards for the identification of high-tech enterprises;periodically strengthen the pertinence of tax support policies.