Can Corporate Income Tax Preference Policies Promote The Investment And Financing Behavior Of Small-micro Enterprises

It is well known that small-micro enterprises have positive effects on enhancing the country's economic vitality,solving employment problems and ensuring social stability.So the sustainable development of small-micro enterprises has strategic significance to national economy and social development.However,in the course of development there have been a lot of difficulties.The investment and financing problems are perceived as the key issues to the survival and development of small-micro enterprises.To promote the development of small-micro enterprises,China has issued a series of supporting policies,including the small low-profit enterprises(hereinafter referred to as SLEs)income tax preference policies which published in 2008,and now the practical effects of these policies are widely concerned.To test whether the income tax preference policies are playing practical effects,I collected and analyzed the tax investigation data of Guangdong province from 2013 to 2014,using the method of Difference-in-Difference analysis based on propensity score matching(PSM-DID).The results showed the actual tax burden of small-micro enterprises in Guangdong province was reduced and the policies have made actual effect on tax reduction.The micro-economic effect which the tax preference policies played is also tested in this paper.The test results showed a significant promoting effect has been made on the fixed assets investment and in-debt financing behavior of small-micro enterprises in a short term,especially on the Machinery&Equipment,and Trade Credit.According to the results of test and analysis,based on the practice of tax work,in the last part of this paper I made some suggestions on how to improve the small low-profit enterprises income tax preference policies.