"Business Tax To Value-add Tax" And Enterprise Innovation Behaviour

In 1994,China began to carry out the reform of tax sharing system,which led to the parallel situation of business tax and value-added tax.With the transformation of China's economic development mode,the irrationality of tax system gradually becomes obvious.On the one hand,the phenomenon of double taxation is relatively serious,which leads to the increase of corporate tax burden;On the other hand,the actual selling price of service products increases,leading to the development of the service industry.In order to solve the law system of parallel double taxation,and a series of economic problems,China's Ministry of Finance and the tax bureau on January 1,2012,will be part of the service industry in Shanghai as a pilot,to reform the unreasonable tax system,the pilot enterprise of business tax change for value added tax(hereinafter referred to as the “BT to VAT”),and gradually extended to other areas and industries.By May 1,2016,the reform of replacing business tax with value-added tax was fully completed,covering all production,operation and circulation fields in the country.Thus,the business tax was completely cancelled.“BT to VAT” as a fuel supply side structural reform and economic development of important tax reform policy,the policy effects should not be limited to eliminate double taxation and reduce the corporate tax burden,more important is through the reasonable policy measures to encourage business investment and research and development,promote its grasp core technology,and improve enterprise innovation ability.Then,can the policy of replacing business tax with value-added tax,which is implemented in China for the purpose of promoting enterprise transformation and development and cultivating core competitiveness,break the policy bottleneck of fiscal and tax support in R&D and innovation,so as to improve enterprise innovation input,innovation output and innovation efficiency?Tax policy of our country has a great influence on micro enterprise's survival and development,on the basis of relevant literature,in localization of specific tax scenario,and combined with the actual situation of Chinese listed companies,this paper tried to research the specific conditions of tax system and special events-“BT to VAT” and analysis its influence on the micro enterprise innovation behavior.At present,the research on tax policies,especially the policy of “BT to VAT”,is still in the development stage,and the relevant research is still at the frontier and scattered level.Therefore,the importance of the problem and the related research is still lack of systematic analysis,on the basis of existing research results,under the guideliness of the externality of economic growth theory,innovation theory,the tax effect theory and the tax burden on and end-result theory,using the standard and the empirical analysis research paradigm,based on three dimensional perspective of enterprise innovation,this paper took “BT to VAT” and the enterprise innovation input,innovation output and efficiency into the whole framework,systematically analyzed the relationship between “BT to VAT” and the enterprise innovation behaviour.It is of great significance to provide evidence for the systematic and scientific evaluation of the effect of “BT to VAT”and to understand the tax logic of the innovation behavior of Chinese local enterprises in the economic transition period.First of all,from the dimension of innovation input,based on the background of the reform of“BT to VAT”,in this paper,empirical research on the first part tries to focus on the impact that“BT to VAT” have on enterprise innovation input,and connecting with the scope of turnover tax,value-added tax deductible and taxes on the perspective of three related influence mechanism,at the same time,combining with Chinese enterprises and the market environment of variance to analysis the heterogeneity that “BT to VAT” may produce,thus concluded the real effect that “BT to VAT” have on the enterprise innovation input.The research results of this paper confirmed the positive effect of “BT to VAT” on enterprises' innovation input.The R&D investment level of enterprises has significantly increased after“BT to VAT”,indicating that “BT to VAT”,as a tax reduction policy,has a significant incentive effect on enterprises' R&D investment.At the same time,“BT to VAT”significantly improved the capitalization rate of enterprises' R&D expenditures,indicating that “BT to VAT” promotes the improvement of the quality of enterprises' R&D investment.Moreover,the sustainability of enterprises' R&D investment has been enhanced after “BT to VAT”.The heterogeneity analysis found that in non-state-owned enterprises,modern service industries,large enterprises,enterprises with less separation between the two rights,and enterprises in regions with better intellectual property protection,“BT to VAT” had a more significant promoting effect on enterprises' R&D investment.In addition,the mechanism analysis finds that “BT to VAT” acted on enterprises' R&D input through three paths: enterprises' tax burden,the scope of VAT deductibility,and enterprises' ability to transfer tax burden.Secondly,from dimension of innovation output,based on the“BT to VAT” background of the reform in our country,in this paper,the second part of the empirical research trying to focus on “BT to VAT” and enterprise innovation output.At the same time,combined with the differences between Chinese enterprises and the market environment,analysing the possible heterogeneity that “BT to VAT” may cause,so as to obtain the true impact of “BT to VAT” on the innovation output of enterprises.In this paper,the results found that “BT to VAT” policy significantly promoted the increase of enterprise patent output,the patent output are classified in accordance with its technical difficulties and the subsequent development value,it is found that the“BT to VAT” policy has a positive effect on the output of invention patents which representing the substantive innovation of enterprises and the output of utility models and design patents which representing the strategic innovation of enterprises.Further study found that “BT to VAT” has increased the intensity of enterprises' technology introduction to intangible assets.The heterogeneity analysis found that in non-state-owned enterprises,high-tech enterprises and enterprises in regions with high marketization level,“BT to VAT” had a more significant promoting effect on the innovation output of enterprises.In addition,the mechanism analysis finds that the intensity of enterprise R&D input plays an intermediary role in the relationship between “BT to VAT” and enterprise innovation output,as well as the relationship between “BT to VAT” and enterprise substantive innovation output.Finally,from the dimension of innovation efficiency,based on the “BT to VAT”background of the reform in our country,in this paper,the third part of empirical research is trying to focus on the relationship between “BT to VAT” and the enterprise innovation efficiency,at the same time,combined with the differences between Chinese enterprises and the market environment,analysing the heterogeneity may be produced by “BT to VAT”,and concluded the real effect“BT to VAT” have on enterprise innovation efficiency.This paper used the innovation “input-output” index calculated by DEA model to measure the innovation efficiency of enterprises.Empirical findings showed that the implementation of“BT to VAT” policy significantly promoted the innovation efficiency of enterprises,and this effect still exists after repeated robustness tests.The heterogeneity analysis found that in non-state-owned enterprises,enterprises with strong financing constraints,mature and recessionary enterprises,“BT to VAT” had a more significant promoting effect on enterprise innovation efficiency.In addition,whether an enterprise has industry-university-research collaborative innovation has a positive regulating effect on the relationship between“BT to VAT” and enterprise innovation efficiency.Taken together,this paper has certain innovative,mainly lies in the integrated use of theoretical analysis,econometric analysis,the methods of literature analysis,systematically combed the positive influence that tax factors may produce on enterprise innovation behavior.Based on the background of China's special tax system——“BT to VAT” reform,this paper empirically identifies the mechanism of its influence on enterprise innovation behavior,including the in-depth investigation of enterprise innovation input,innovation output and innovation efficiency.In the past 40 years,China's economy has experienced rapid development,which cannot be separated from the support of taxation.As China's economy has entered a new normal,its economic growth has declined in stages,and more emphasis has been placed on the quality of economic development.At this time,whether the tax policy reform can stimulate the healthy development of China's economy and the long-term development of enterprises is particularly important.Therefore,this paper better identifies the net effect of “BT to VAT” on the innovation behavior of different enterprises in China by looking for the exogenous event.The research of this paper reflects the relevant mechanism of the influence of the policy of“BT to VAT” on the innovation behavior of enterprises in the transition period,which is conducive to a more comprehensive understanding of the influence of China's tax incentive policy on enterprise innovation,and provides a certain reference basis for China's future tax reform.