Research On The Impact Of Income Tax Reduction On Fixed Assets Investment Of Chinese Software Enterprises

Since the 1990s,information technology has developed rapidly.and software technologies and products have been widely used.At the same time,the application of software technology has also penetrated from the Internet industry to traditional industries.It has become a link between the upstream and downstream of the combined industry.Nowadays,the software industry has become the main driving force for China's economic development.Especially facing the supply-side structural reform,promoting the rapid development of software companies has become the focus of attention in the future.However,compared with developed countries,Chinese software companies still have problems such as uneven regional development,low level of talents,and backward core module technology.It needs to adopt some industrial policies to increase support.Since issued a series of tax preferential policies in 2000,a tax policy framework supporting the development of the software industry has basically been formed,but whether the implementation of the preferential measures has reached the expected effect,especially the effect on the fixed assets of software companies,and whether it has promoted enterprises equipment investment,how to adjust and improve relevant tax policies,still need our further attention and discussion.This article takes the preferential income tax policy as an entry point and studies its impact on the fixed asset investment and enterprise development of the software industry.First,this article introduces the research background and significance,collates and summarizes domestic and foreign research literature,and introduces the research ideas,content,and methods of this article.Secondly,the tax policies enjoyed by the software industry are sorted out.From the perspectives of cash flow and net present value,the related theories of tax relief on fixed asset investment are analyzed,and two hypotheses are proposed.Finally,combined with empirical analysis on the basis of qualitative analysis,the effect of income tax credit on fixed assets investment in software enterprises and fixed assets investment in machinery and equipment was studied,and heterogeneous factors were added to further analyze and discuss the effect.In the empirical analysis of this article,the data of the software industry listed companies in CSMAR from 2011 to 2018 are selected as samples.The natural logarithm of the income tax reduction calculated at the actual tax rate is used as the explanatory variable.The natural logarithm of fixed assets and machines are the explained variables.A fixed effect regression model about panel data is constructed to quantitatively analyze the direction and degree of impact between taxation and fixed asset investment.At the same time,a mixed regression model and a random effect regression model are added for comparison and discussion.The research analysis found that the income tax credits of the three models have a significant positive correlation with the two types of assets,but the coefficients are different,and the promotion effect on fixed asset investment is stronger.The hypotheses 1,2 are verified.After that,in order to further explore the effect of tax relief on different types of enterprises,the sample data was divided by the size of the enterprise and the nature of ownership as a standard.Heterogeneity analysis was performed.Each group has positive effect on investment in fixed assets,but there are differences within the group.Income tax reductions have a more significant incentive effect on two types of assets of private enterprises than state-owned enterprises,and a small group of enterprises are more significant than large-scale enterprises.Second,replacing the explanatory variable with total factor productivity for regression,the result shows that income tax incentives promote the increase of total factor productivity and promote the development of the software industry.Finally,in order to further test the reliability of the results,change the calculation method of income tax concessions for robustness test,this paper changes the calculation method of income tax preferential amount to conduct robustness test.At the same time,we add the lagging one-period total asset net profit margin,asset return rate and lagging two-period tax preference amount as instrument variables,and use two-step GMM estimation to perform endogenous test in order to increase the validity of the research results.Based on the theoretical basis and empirical analysis,relevant policy recommendations are proposed.On the one hand,improve corporate income tax preferential policies,establish a talent training mechanism,formulate detailed and targeted income tax policies.At the same time,expand preferential enjoyment time,Improve preferential income tax policies related to fixed asset investment.On the other hand improve other related industrial policies,build a system combining national and local preferential policies,and optimize investment and financing environment.