Research On The Tax Incentive Effect Of Corporate Charitable Donation In China

As a basic institutional arrangement,the third distribution will play a positive role in promoting common prosperity,and form a more complete income distribution system by cooperating with the initial distribution and redistribution.The report of the 20th CPC National Congress proposed to improve the distribution system and standardize the order of income distribution.In order to implement the spirit of the 20th CPC National Congress and promote common prosperity,we need to attach importance to the power of the third distribution and guide the healthy development of charitable donations.Enterprise is an important subject of charitable donation.Corporate charitable donation will release its potential in the field of income distribution and provide impetus for realizing the common prosperity of all people.At the present stage,China still has room for improvement in the tax laws and relevant policies of corporate charitable donations.From the perspective of tax incentives,this paper studies the tax incentive effect of corporate charitable donations,finds out the shortcomings of tax incentives,and puts forward corresponding countermeasures and suggestions on this basis,which is conducive to promoting the optimization of tax incentives,enhancing the positive nature of corporate charitable donations,and promoting the modernization of social governance.This paper first defines the relevant concepts and analyzes the relevant theories.This paper expounds the theory of charitable donation and tax incentives,and analyzes the internal motivation of corporate charitable donation from various aspects.Select externality theory,Pareto optimality and rational economic man as the theoretical basis of this paper.Finally,it analyzes the mechanism of tax incentives and corporate charitable donations.Secondly,the current situation of corporate charitable donation and tax incentive policies is investigated.In the aspect of corporate charitable donation,introduce its development scale and direction.In the aspect of corporate charitable donation tax incentive policy,summarize the evolution of corporate charitable donation tax incentive policy,and make a brief analysis of the existing tax incentive policy.Thirdly,select the panel data of listed companies from 2009 to 2019 for empirical analysis.Through F test and Hausman test,the random effect model is adopted for empirical research.The explained variable is the expenditure of corporate charitable donations,and the explanatory variable is the price of charitable donations.In addition,we also selected net profit,advertising marketing,return on equity and return on equity as control variables to conduct benchmark regression analysis,robustness test and heterogeneity analysis.The results show that there is a significant negative correlation between donation tax price and corporate charitable donation expenditure,and tax has an incentive effect on charitable donation,which can promote enterprises to increase charitable donation.Further analysis shows that the tax incentive effect of charitable donation is different between state-owned enterprises and non-state enterprises.Finally,based on the theoretical analysis and empirical analysis,and combined with the actual situation of our country,put forward corresponding countermeasures and suggestions,including further improving the construction of the rule of law,expanding the scope of pre-tax deduction eligibility list,strengthening the non-monetary donation tax incentives,increasing tax incentives,promoting charitable donations,and improving social governance.