Research On Finance And Taxation Support For Promoting SMEs Development In China

Along with the market economic system reform of our country is being deepened constantly, SMEs in china is growing, which have played a more and more important role in promoting national economy development.Statistics show that approximate99%of enterprises are SMEs in our country, contributing more than60%of GDP, more than60%of revenue,and providing more than80%of urban jobs.China’s SMEs plays an irreplaceable role in promoting economic development, expanding employment, promoting technological innovation and protecting the people’s livelihood, etc. But China’s SMEs development is facing serious difficulties and problems, because most of SMEs are "Young infancy" in the enterprise life cycle, which born weak, and with the intensification of the market competition, as well as the increasing of the international and domestic market unstable factors, the impact of the financial crisis. The problems are mainly weak foundation, lacking of talent,low quality and hard capital financing,etc.So SMEs can not compete with the large enterprises,which greatly affects the healthy development of SMEs and the sustainable development of the whole economic society.we need strong national policy support badly,while as an important part of our policy, it is very important to study the fiscal and tax policy.The experience of various countries in the world showed that the government appropriately tilted to SMEs in the fiscal and tax policy aspect.In practice it has proved it can reduce the cost and help SMEs to get more financial support a fair competition market environment, etc because of the strong finance and taxation support,Thus contributing to a better development of SMEs.However, there are still many defects in the current finance and taxation support system, Such as, low legislative level and little effect policy, etc.This is a very urgent problem to be solved in improving China’s fiscal and tax policy and establishing a fiscal and tax policy support system which is scientific and effective, with China characteristics and accordancing with our country’s condition for fully playing its role in promoting the development of SMEs in China. It takes the current fiscal and taxation policy of SMEs development as a system to be studied and puting forward recommendations combined with chinese conditions for improving finance and taxation support system for SMEs development by drawing on the experience of foreign fiscal and tax policy on supporting SMEs development.This article is divided into six chapters altogether, specifcally as follows: The first part is the introduction to introduce main background and significance of the paper, the domestic and international research state, as well as the research methods and ideas, the main innovative points and shortcomings, which leads to finance and taxation support for promoting SMEs development, then clarifies the whole article writing ideas.The second part analyzes the theory of finance and taxation support for promoting SMEs. To lay a solid theoretical foundation for further expansion, this part mainly introduces the domestic and international definition of SMEs, the theoretical basis, the tools and the role of finance and taxation support for the development of SMEs.The third part analyzes the state of current finance and taxation support for SMEs in China. This part focuses on the main difficulties in the development of SMEs and the defects of finance and taxation support for SMEs development Thoroughly in order to provide detailed information for improving finance and taxation support system for SMEs development.The fourth part mainly has carried on a consolidation on finance and taxation support for SMEs in Germany, Japan,American to extract the useful experience.The fifth part explores the recommendations on improving finance and taxation support system for SMEs from the guiding thought, basic principles and specific strategis respectively.The sixth part is the conclusion,this chapter not only summarize fiscal and taxation support policy for promoting SMEs development in china,but also prospect the future research direction.