Research On The Factors Influencing The Tax And Fee Burden Of SMEs In China

The number of SMEs in China accounts for more than 90% of the total number of enterprises and plays an important role in promoting employment and economic development.However,SMEs are characterized by small scale and insufficient competitiveness in the market competition,and the tax and fee burden has become one of the important influencing factors that hinder the development of SMEs.In order to promote the development of SMEs,tax and fee reduction for SMEs has become the focus of the new round of national tax and fee reduction policy.However,SMEs in China are still facing heavy tax and fee burden.Therefore,it is of great practical significance to study on the influencing factors of different kinds of the burden of tax and fee of SMEs to further reduce the burden of SMEs in China.This thesis takes SMEs as the research object,analyzes the influencing factors of different kinds of tax and fee burden of SMEs in China with specific cases,and proposes corresponding tax and fee reduction suggestions from both enterprise and government levels.Firstly,this thesis provides quantitative statistical analysis on the structure of tax and fee burden and the level of various types of tax and fee burden of SMEs in China based on the tax data of listed SMEs in China.Secondly,Hollyland(China)Electronics Technology Corp.,Ltd.is selected as a case study to analyze the structure and level of its tax and fee burden,and to analyze the influencing factors of tax and fee burdens of this enterprise from four aspects: corporate income tax burden,VAT burden,small tax burden and non-tax burden.The study finds that the tax and fee burden of SMEs in China is influenced by policies and internal behavioral characteristics of enterprises.In terms of income tax burden,R&D investment and profitability level have the strongest influence,capital intensity has weaker influence and capital structure has little influence;the turnover tax burden of SMEs is influenced by the profitability level of enterprises;the non-tax burden is influenced by the proportion of fixed assets of enterprises in addition to the strong influence of local policies;the small tax burden is more influenced by local policies,among which the property tax burden is influenced by fixed assets and investment real estate scale.Then,this thesis analyzes the problems of tax and fee reduction policies for SMEs in China,and lays the foundation for the subsequent policy suggestions.Finally,based on the research findings,this thesis puts forward corresponding suggestions for various tax and fee burdens of enterprises from both enterprise and government levels.In terms of income tax burden,the government should increase incentives for innovation of SMEs;SMEs should make use of tax preferential policies,appropriately increase the scale of debt financing,increase R&D investment and improve fixed asset intensity.As far as the VAT burden is concerned,the government should continue to optimize the reform of the VAT system and simplify the tax system;SMEs should strengthen the management of VAT invoices.As far as the small tax burden is concerned,the government can appropriately reduce or waive the property tax paid by SMEs;SMEs should make full use of the land assets to avoid idle assets.As far as non-tax burdens are concerned,regions should continue to implement policies such as reducing social security fee rates;SMEs can increase their capital intensity and actively purchase automated production equipment.In addition,the government should also establish a long-term mechanism for preferential policies when formulating policies to reduce taxes and fees for SMEs,lower the threshold for preferential policies on taxes and fees for SMEs,and develop differentiated preferential policies for SMEs.