Policy Effectiveness Of Tax Incentives To Promote Research And Development Impact Of Factors

With the further development of China’s economy, the pursuit of economic growth ratehas been slowly falling behind, the efficiency and quality of economic growth slowlybecoming the focus of development, transformation of economic development in China’s"Twelfth Five-Year Plan" has become the main theme, becoming a high-tech enterprises toadjust the industrial structure, promote sustained and rapid economic the main driving forceof development. Due to technological innovation activities have characteristics of publicproperty, externalities, uncertainty, making the investment phenomenon of market failureexists on the optimal number of technological innovation activities, which requires thegovernment to provide some tax incentives to guide enterprises to increase R&Dinvestment macro-control.In this paper, the reduced15%tax rate levied, R&D expenses deduction, venturecapital companies can offset the taxable income, equipment purchase payments andaccelerated depreciation deduction and other tax policy to use as the basis for the enterprisein Huzhou policy effectiveness factors for the study, questionnaire and interview forms,analyze tax incentives to promote research and development investment. The main study inthis article is as follows:First, a large proportion companies that apply the tax incentives unsuccessfully indifferent reasons, lead the companies can not enjoy the effects of tax savings which bringthe tax policies. This result lead to the tax incentives which can promote the R&D, can notplay its effect of policies.Second, the industry and size of the companies have a great impact on whether toapply for the tax incentives or not. In the companies which can not apply the policiessuccessfully, textile enterprises and small micro enterprises account for the majority,manufacturing companies apply for and able to enjoy the tax benefits account for a largeproportion.Third, there are similarities and differences in the effective influence factors ofdifferent preferential tax policies. Specifically, information asymmetry factor is the mainreason that affect the tax incentives like “Reduced rate of15%of high-tech enterprisesenterprise income tax”,“R&D expense deduction”,“Accelerated depreciation”. But thereason of assessment factors is the main impact the tax “Accelerated depreciation”, not thereason that mainly affect the tax “Reduced rate of15%of high-tech enterprises enterprise income tax”,“R&D expense deduction”.Fourth, the main factors that affect the impact of R&D tax incentives including:taxinformation asymmetry, corporate accounting personnel be not familiar with the policies, belack of tax professionals; be not enough with policy advocacy efforts; the policyimplementation efficiency needs to be improved and the prerequisites apply about thenumber of their own researchers need to be improved, on the whole.According to the above-described problems, this paper put forward the policyrecommendations from perfecting policy design, improving the efficiency of policyimplementation, strengthening the initiative of policy services, optimizing the policyenvironment and so on respectively.