Analysis And Optimization Of Equity Incentive Tax System In China

In recent years,with the continuous deepening and development of China's market economy,the modern company system characterized by "separation of two powers" has gradually been recognized and adopted by most companies.At the same time,how to solve the principal-agent problem arising from the modern company system has become a problem that Chinese enterprises need to face.Equity incentive,which is regarded as an effective mechanism to solve the principal-agent problem and improve the efficiency of enterprises for a long time,is gradually recognized and practiced by Chinese enterprises.Not only listed companies with relatively mature corporate governance actively carry out equity incentive practice,but also non-listed companies have used equity incentive model to help enterprises develop.Tax policy plays an important role in the implementation of equity incentive.It not only regulates the income generated in the process of incentive plan,but also has a certain impact on the implementation effect of equity incentive.Based on this,this paper makes a study on the tax policy of equity incentive in China,hoping to further clarify the theoretical mechanism of the effect of tax policy on the implementation of equity incentive through this study.Combining with the practice of equity incentive and the adjustment of tax policy in recent years,this paper,from the perspective of Fiscal and Tax [2016] 101,verifies whether the tax policy has a significant impact on the implementation of equity incentive through empirical analysis.With the reference and comparison of foreign related systems,this paper tries to provide more effective,feasible and specific policy suggestions for the future development of equity incentive tax policy in China,and to provide some reference for the continuous optimization and adjustment of equity incentive tax policy in China.Specifically,this paper first combs the theoretical mechanism of equity incentive and its tax policy on the basis of existing theory and research,and makes a theoretical analysis of the impact of tax policy on equity incentive.From the theoretical level,it is affirmed that tax policy has certain influence on the implementation effect of equity incentive.Secondly,in view of the new tax policy introduced in recent years,this paper summarizes the current situation of equity incentive tax policy in China in the new era,in order to better sort out and evaluate the equity incentive tax policy in China.By collecting the relevant data of New Third Board Company from 2015 to 2018,and taking the tax system adjustment caused by Notice No.101 of Finance and Tax as the breakthrough point,this paper establishes a multiple regression model to empirically analyze the impact of tax policy adjustment on the implementation effect of equity incentive,and to measure and evaluate the policy adjustment.Through empirical analysis,this paper verifies the basic hypothesis that tax adjustment affects the effect of equity incentive implementation.Tax preferences generated by Notice No.101 of Finance and Tax [2016] have enhanced the implementation effect of equity incentives for new third board enterprises,and the policy has produced the expected effect.At the same time,the empirical results show that the adjustment of tax policy does not show any difference among different equity incentive modes.For the new third board enterprises,whether they choose stock options or restricted stocks,the tax policy shows a positive effect,and there is no significant difference.Finally,this paper makes a brief introduction and comparative analysis of the tax system of equity incentive in the United States,Britain and France,and puts forward some suggestions for the future development of China's equity incentive tax policy on the basis of the above work.These include: establishing a unified and perfect equity incentive tax system,integrating the existing normative documents;implementing a multi-level equity incentive tax policy for listed companies,and giving tax preferences to eligible equity incentive plans in order to give full play to the long-term incentive role of equity incentives for companies.