Study On The Effects And Strategies Of Tax Policies For The Development Of SMEs

At present, China’s economy has shifted to the "new normal", which presents as the growth slowdown from a high rate to a medium rate, the structure undergoing comprehensive and fundamental changes, the engine transformed to be diversified. Actively adapting to the "new normal", keeping a mid-to-high-rate economic growing pace, ensuring a substantive transformation of economic development have become the main tasks currently. "Volkswagen Entrepreneurship and Innovation" being in full swing, the development of small and micro enterprises (SMEs) has been emphasized unprecedentedly. Series of encouraging policies have been frequently introduced, including a large number of tax incentives. In 2015, the State Administration of Taxation claimed to implement preferential tax policies for SMEs as priority. This paper targets on exploring the relationship between tax policy and development of SMEs under the very background.This paper takes the logical observation experience:theoretical analysis as a basis, empirical study a test while normative analysis a complement. On the basis of the theories of the existence of SMEs and tax effect theories, we illustrate the necessity of the existence of SMEs and the reasonableness of tax incentives, and combined with the business process we analysis the functioning mechanism of different sorts of tax policies on SMEs. Then by establishing a provincial panel data model, we analyze the scientificity of tax’s impact on SMEs’development empirically and make a qualitative analysis of different sorts of tax policies. On this basis, a normative analysis is given as confirming and complementary material, pointing out that the present tax incentives may well have teeth on reducing the burden of SMEs as well as arousing vitality, but so far they’ve had effect deviation on accelerating the development of SMEs on the account of applying a complex tax system, preference being insufficient, incentive methods seeming simplex, polices lacking of systematicness. Based on the foregoing analysis, tax policy recommendations are made to perfect the current tax incentives for SMEs, including simplifying the tax system, increasing the intensity of promotions, altering encouraging approaches and forming a system of the similar policies and etc.