Research On The Impact Of China’s Pre Tax Deduction Policy On Enterprises’ Public Welfare Donation Behavior

In recent years,China’s economy has developed rapidly and people’s living standards have improved.At the same time,the problem of large gap between the rich and the poor in China has gradually emerged.According to the 2020 China Household Statistics Yearbook,China’s Gini coefficient in 2019 is 0.465,which has been greater than 0.46 for a long time,exceeding the warning value of 0.4,indicating the large gap between the rich and the poor in China.Social development and stability are inseparable from the narrowing of the gap between the rich and the poor.The relief of the government can not solve the problem completely,and the power of the public can play a complementary role.In the course of China’s public welfare donations,enterprises are the main force of public donations.Especially in the recent three years of COVID-19’s destruction,donations from enterprises have played an important role in the battle against epidemic diseases.Among the taxes paid by enterprises,enterprise income tax accounts for a large proportion.By studying and using the incentive role of enterprise income tax to promote enterprise donation,we can promote social development and stability.Based on the public welfare donation of China’s existing listed companies,this thesis compares the tax system of foreign donations,analyzes the disadvantages of China’s donation tax system,and puts forward countermeasures and suggestions.First,by expounding the connotation of public welfare donation,the impact of corporate income tax on public welfare donation through pre tax deduction and the theoretical basis of public welfare donation,it lays the foundation for the follow-up analysis.Secondly,it expounds the reform process and actual situation of China’s tax policy on public welfare donation,and theoretically summarizes that China’s income tax policy related to public welfare donation has some problems,such as insufficient pre tax deduction incentive of public welfare donation,limited incentive of non monetary donation,limited qualified donors and cumbersome procedures of public welfare donation.Third,through empirical analysis,the data of 659 listed companies from 2014 to 2018 are selected as samples,a double logarithm model is established through fixed years and industry effects,and the samples are classified according to the policy reform and enterprise size to make a heterogeneity test,It is concluded that there is a negative correlation between the donation price and the expenditure level of enterprise public welfare donation,and the incentive of China’s income tax policy to public welfare donation is insufficient.Fourth,by summarizing the public welfare donation policies of the United States,the United Kingdom and Japan on the donation of non monetary assets,the setting of donation subjects and the pre tax deduction system.Fifthly,according to the above analysis,it is proposed that China can adopt the differentiated pre tax deduction proportion of income tax and extend the carrying forward period,reduce the qualified recipients,adopt the management mode of "wide access and strict supervision",refine the non monetary asset donation system and simplify the pre tax deduction procedure of public welfare donations.