Research On The Impact Of Preferential Corporate Income Tax Policies On Corporate Charitable Donation

The fourth Plenary Session of the 19 th CPC Central Committee for the first time established the important position of charity in China's economic and social development.In recent years,China's Gini coefficient has remained high.In terms of income,the gap between urban and rural areas,between regions and between industries has not been narrowed,but is constantly expanding.How to reduce the income gap is a problem that our country must face on the road to common prosperity.In view of this,the 10 th Meeting of the Financial and Economic Commission of the CPC Central Committee in 2021 pointed out that we should promote common prosperity through high-quality development,and establish basic institutional arrangements for coordinating primary,redistribution,and tertiary distribution.Charitable donation is the main form of the third distribution,which plays a positive role in narrowing the gap between rich and poor groups and promoting a fairer society.Among the various donors,enterprises play an important role that cannot be ignored,and the preferential tax policy is a crucial factor to promote the healthy and rapid development of corporate philanthropy.But at present,the incentive degree of tax benefit policy in China is still lacking.Based on this background,this paper firstly uses literature research method to sort out the relevant research results and clarify the research direction.Then through mechanism analysis,it clarifies how tax affects corporate donation behavior.Then,with the help of data,the status quo of charitable donation is described to intuitively understand the huge role of enterprises in it.Through sorting out the policies,we also found that there are some problems in relevant preferential policies,such as a small number of public welfare organizations qualified for pre-tax deduction,a low percentage of deduction,imperfect preferential policies for non-monetary donations,and complicated preferential procedures.There is still a lot of room for improvement in related policies.After understanding the status quo,this paper takes the data of listed companies in the past five years as samples to conduct an empirical study on the impact of income tax preferential policies on corporate donations,and conducts robustness tests.The conclusions of this paper are as follows: The effective tax rate of enterprises has a significant positive impact on corporate donation,and the tax deduction policy of charitable donation can reduce the effective tax rate of enterprises.Therefore,the tax incentive policy can obviously guide the charitable donation behavior of enterprises.Meanwhile,the adjustment of the extension of carryover years in2017 contributed greatly to the growth of corporate donation spending.Finally,this paper puts forward some policy suggestions to promote the development of enterprise philanthropy.