Research On The Legal Issues Of Income Tax Preference For Small And Micro Enterprises

The 2021 is the opening year of the 14 th Five-Year plan.Although China’s economy was hit by COVID-19 last year,it is gratifying that China’s economic development is still in a relatively large growth trend.Always taking the people as the center is the social principle that the current social development should follow.People’s living and working in peace and contentment is the ultimate goal of social development.The process of social development cannot be separated from the extensive participation of the people.At the same time,the fruits of development should also be distributed to the people as dividends.With the change of economy and times,small and micro enterprises play an increasingly important role in the market economy and play an indispensable role in China’s national economy.The participation of small and micro enterprises is indispensable for people’s livelihood,employment promotion and development.Due to their inherent disadvantages,small and micro enterprises are annihilated by the flood of market economy.In order to effectively support the development of small and micro enterprises,the state has given them preferential tax treatment in the form of law since the promulgation of the enterprise income tax law.So far,more than ten preferential tax policies have been issued to support small and micro enterprises.The introduction of a large number of policies is a good start,but due to its multi-faceted politics,the beneficiaries of tax preference are adjusted by many laws,the preferential form is too single,the collection and management procedure is too late,and the lack of system supervision,which makes the tax preference of small and micro enterprises irregular.There are two different views on tax preference,namely "the rule of policy" and "the rule of law",but the optimization of the system is the common point,so we should standardize the preferential treatment for small and micro enterprises.This paper is divided into three parts:The first part introduces the basic theory of income tax preference for small and micro enterprises.First of all,we need to define the concept of small and micro enterprises and tax incentives.At present,there are different definitions of small and micro enterprises in tax law and SME Promotion Law in China,so this paper intends to study the concept of small and micro enterprises from the perspective of tax law.Tax preference belongs to the field of tax law,which naturally conforms to the principle of taxation according to capacity.At the same time,externality theory can also prove its rationality.The purpose of giving special preferential policies to small and micro enterprises in the field of income tax is to balance the tax burden,broaden the tax base and solve the external problems.All of the above constitute the survival value of the existence of income tax preferences for small and micro enterprises.The second part is to introduce the current legislative situation and the crux of the small and micro enterprises in the field of income tax preference.At present,although a number of laws and regulations have been issued on the income tax preference of small and micro enterprises,there are still some drawbacks that have not been solved.The legislation of tax preference is too scattered.There are many kinds of identification standards for the beneficiaries of income tax of small and micro enterprises,which are not unified.The form of tax preference is mainly direct preference,lacking the participation of indirect preference.The declaration procedure is too cumbersome,which does not reduce the burden of small and micro enterprises Tax burden,lack of supervision,can not achieve effective supervision of income tax preference for small and micro enterprises.The third part is to put forward reasonable suggestions for the current preferential policies of small and micro enterprises in the field of income tax.First of all,in terms of the concept of beneficiaries of small and micro enterprises,the concept of small and micro enterprises should be unified defined,the scope should be expanded,and a certain grace ratio should be given on the limited standard.Secondly,in view of the current characteristics of insufficient indirect preferential forms,it is suggested to expand the scope of accelerated depreciation of fixed assets and normalize the deferred tax payment mechanism.Thirdly,for the cumbersome collection and management procedures,it is suggested that Finally,in the aspect of supervision,we should build a multi-party supervision body and introduce credit supervision to regulate.