Research On The Influence Of Tax Preferential Policies On The Profitability Of Enterprises

In order to complete the policy objective of tax preferential policy to promote micro-economic development,since the party's 18 th National Congress,China has put forward a reform direction that ensures that China's tax preferential policies are reasonably implemented in micro-enterprises.According to previous scholars' studies,we have found that tax preferential policies will not only increase the profitability of enterprises by increasing the scale of enterprises and speeding up the flow of funds,but also have a negative impact on the profitability of enterprises due to market failure and rent-seeking phenomena.At the same time,the study found that the preferential policies of different taxes have different impact mechanisms on the profitability of enterprises.Therefore,from the perspective of the impact of tax preferential policies on the profitability of companies,the paper compares and analyzes the impact of preferential policies of different taxes on corporate profits to improve China's tax preferential policies.First of all,in the paper,from the theoretical point of view,the conclusion that tax preferential policies will improve the profitability of corporates by reducing corporate investment,reducing corporate risks,etc.At the same time,the preferential policies of different taxes have different effects on companies: In the same range of preferential conditions,compared with the preferential policies for income tax,VAT preferential policies are more conducive to enterprises with high technological content,and preferential policies for small taxes are more favorable to enterprises with small-scale and low-profit.Secondly,the paper sorts out the current preferential policies in China and finds that although China's current tax preferential policies are mainly aimed at promoting stable and rapid economic development,there may still be issues such as unclear preferential targets,irrational preferential structures,and insufficient levels of legislation.Finally,the paper takes the New OTC Market listed companies as the research object to carry out empirical research to verify the influence of tax preferential policies on enterprises and to test whether the current tax preferential policies in China have the above problems.The paper separately establishes a multiple linear regression model between tax preferences,tax burden,and profitability of different types of companies,to evaluate China's current tax preferential policies and provide empirical evidence for the direction of future preferential policies.Based on the results of the above research,the paper draws the conclusion that tax preferential policies can indeed promote the growth of corporate profitability,but the problems existing in China's tax preferential policies are unclear and the level of legislation is too low to be improved.At the same time,in terms of preferential structures and methods,China's current inter-tax structure setting of tax preferences is more reasonable but VAT preferential policies still need to be improved.Based on the above conclusions,for China's current tax preferential policy system,the paper puts forward three suggestions,namely clearing preferential targets,optimizing the preferential tax system and accelerating the tax legislation.