Research On Corporate Income Tax Issues Of Infrastructure PPP Projects

Infrastructure is an important foundation for China's economic and social's development.However,due to the limited financial capacity and the limited size of debt,local governments cannot effectively meet the enormous needs of the public for infrastructure and public services.As a new type of financing and operation method in China,PPP introduces social capital in a competitive way in the field of infrastructure construction.It effectively combines the advantages of government's local administrative resources with the advantages of the social capital's technology,management,and operation.The effect can effectively solve the problems.However,due to the large amount of investment in infrastructure PPP projects,the long cycle of fund recovery,the complex design of the structure and the price of products and services under certain control,the project's return on investment is low,and some tax issues existing in the long period will also affect the project.Among these taxation issues,many issues concerning the treatment of corporate income tax issues are unclear and controversial,such as government subsidies,investment income transfer and income tax treatment.In addition,some income tax preferential policies are not applicable to public infrastructure projects supported by the state,such as the policy of three exemptions and three half reductions have little incentives on project characteristics,and sometimes even exist in name only.This exposes investors to the negative incentives of taxation problems and the lack of favorable incentives for tax incentives.This has an great impact on the enthusiasm of investors for investment projects.These issues urgently need to be resolved and improved.By sorting out domestic related tax policies,we find that there are some unresolved income tax issues in the existing infrastructure PPP projects in China,and then analyzes the reasons behind the problems.Taxation is an effective regulation and incentive tool.Formulating appropriate tax support policies can promote the allocation of resources and promote the construction and development of China's infrastructure.The development of PPP abroad is relatively mature.When formulating tax incentive policies,we can draw lessons from foreign countries for reasonable practices.The theories of public goods,positive externalities,and risk adjustment provide the theoretical basis for the country's necessity to use tax tools to intervene in the development of PPP projects.This paper studies the case of PPP project in province A 's traffic infrastructure,and analyzes the main problems of income taxation in the project operation stage.Under the premise that the payment matrix model proves that the tax incentive policy can increase the project investor's expected investment probability.Then analyzes the degree of impact of different tax preference levels on the project income net present value by constructing the project post-tax profit discount model.The elasticity coefficient measures the sensitivity of the item's present value of after-tax income to tax incentives.Finally,based on the overall theoretical research and case analysis of the article,then some suggestions for solving these problems are given.