Analysis Of Tax Incentive Effect Of Corporate Charitable Donation In Our Country

In recent years,philanthropy in China has seen its third wave of activity,following the 2008 Wenchuan County earthquake and the enactment of a charity law in 2016,second,it was influenced by the third distribution policy and the fifteen plan.Although public events have occurred frequently in recent years and the domestic economy has been seriously affected,the relevant policy environment is good,both the policy of promoting common prosperity through a third distribution and the policy of encouraging donations to public events encourage philanthropy.Corporate donation is the most important part of the total amount of social donations,tax incentives is to develop philanthropy,to guide enterprises to participate in philanthropy one of the important policy tools.However,there is still a lot of incentive space for charitable donation in our country,and there are also some problems.Therefore,the tax incentive policy of charitable donation in our country needs to be further studied and perfected,so as to encourage social capital to invest in charitable industry more reasonably and efficiently,which is beneficial to the sustainable development of social economy,the fair efficiency of income distribution has far-reaching significance.On the basis of the above research significance and background,this paper first analyzes the operating mechanism and internal and external factors of corporate charitable donations,it is found that the charitable resources in our country need to be donated through the intermediary to link up with the tax,and the tax preference is also one of the important factors of corporate donation.From the theoretical basis of charitable donation analysis of tax incentives can reduce the donor’s donation costs,and to encourage and guide the signal.And from the profit maximization and Utility maximization problem point of view,we find that when we assume charitable donations as a normal commodity,tax incentives will reduce the relative price of the commodity,thus producing income effects and substitution effects,and the full amount of deduction than the amount of deduction of greater incentives.Based on this,this paper takes the2021 of Chinese a-share listed companies from 2013 to 2021 as the research sample,builds the econometric model,and makes an empirical test on it.The results also confirm the hypothesis that the relative price of charitable donations has a negative correlation with the corporate donation behavior,and the increase of tax incentives will encourage the corporate charitable donation behavior in our country.Through the analysis of the current situation of China’s philanthropy and the sorting out of the policies,it is found that the overall charitable resources in China are rising slowly and steadily,but there are very few social groups with pre-tax deduction,and the object of donation is limited to monetary donation,and enterprises enjoy tax incentives to declare the process time-consuming.This seriously dampens the enthusiasm of the main donors,and is not conducive to the development of social welfare level.On this basis,this paper compares the tax policies of charitable donations in Britain and the United States,and draws some experiences from them.On this point,combined with the previous theoretical analysis and empirical conclusions,this paper puts forward some suggestions on how to improve the tax incentive effect from three aspects: the recipient,the donor and the tax administration.