The Comparative Research On The Policy Of Advertisement And R&D Pre Tax Deductions About Pharmaceutical Companies

Health is the basic needs of people,it also is the realization of people's happiness,rejuvenation and country's richness.The pharmaceutical industry is a matter of our life and security.It is very important to come true the objective of “healthy China”.Therefor,the pharmaceutical enterprises must product high-quality and safe drug.For pharmaceutical companies,they have to strengthening innovation to develop new drugs and provide high-quality medical service for people.According to the financial statements analysis,the article analyzes the advertisement and R&D expenditure of the case company.The case company's advertisement spending in the last seven years more than 15% of main business income,even reached 50%,but the R&D expenditure never more than 2%.Advertising spending is more than 8 times of R&D expenditure,it shows case company insufficient efforts in R&D innovation.The tax policy which our country is in practice now,objectively encouraged enterprises' advertising behavior,some pharmaceutical enterprise imitate medicines simply,and even rely on advertising to seize market share.The tax policy cut the enthusiasm of invest in R&D.According to the company's advertising and R&D expenditure,this article argues that the government should cancel the policy of advertisement expense deductions of pharmaceutical enterprise.On the contrary,the government should increase the pre-tax deduct intensity of R&D spending.It is good for guiding the pharmaceutical enterprises from two aspects of economic benefits and social responsibility,providing people with safe and effective drugs.