Research On The Effect Of Tax Rebate Incentive On The Investment Of Advanced Manufacturing Enterprises

To promote high-quality economic development and the transformation and upgrading of the manufacturing sector,China has withdrawn a series of tax and fee reduction policies to further reduce the burden on enterprises and stimulate market vitality.As the country’s largest tax,VAT has continuously deepened its reform in recent years and made great progress in the construction of the tax rebate system.As early as 2011,China piloted the preferential policy of VAT rebate for a small number of qualified enterprises,and conditionally refunded the final VAT rebate for pilot enterprises.In 2018,the pilot program of withholding tax rebates was extended to some industries.After a series of trials,in the draft of the 2019 Value-added Tax Law,China has made it clear that tax credits will be refunded to qualified VAT taxpayers as a basic system of VAT,and the scope of the taxpayer’s industry will no longer be restricted.This new institutional arrangement is of great help to relieve the financial pressure of enterprises,and can also encourage enterprises to increase investment in equipment and research and development,which has a positive incentive effect on enterprise investment.With the deepening of the reform of "tax reduction and burden reduction",China has introduced the policy of VAT rebate for advanced manufacturing industries(Document 84 of Finance and Taxation(2019)),relaxing the conditions for applying for tax rebate for some advanced manufacturing industries,and increasing the intensity of tax rebate.By 2022,through the continuous adjustment and improvement of the policy,the scope of the policy,which was originally implemented only for some advanced manufacturing industries,has been expanded,and general manufacturing industries,small and micro enterprises,and some service industries have been included.The influence of the policy on advanced manufacturing industries has gradually increased.In order to comprehensively evaluate the effect of the implementation of the VAT rebate policy on stimulating the investment of advanced manufacturing enterprises,this paper firstly discusses the mechanism of the influence of the VAT rebate policy on the investment of advanced manufacturing enterprises from the theoretical level.Then,based on the background of the introduction of Document 84 of Finance and Taxation(2019),A difference-difference model is constructed by using the financial statement data of the A-share listed advanced manufacturing enterprises from 2017 to 2021,and the influence of the promulgation-implementation of Document 84 of Finance and Taxation(2019)on the direct investment and R&D input of advanced manufacturing enterprises is discussed.It is found that the implementation of the advanced manufacturing tax rebate policy can significantly stimulate the R&D input of the advanced manufacturing enterprises,but it has a inhibitory effect on the direct investment of the advanced manufacturing enterprises.Further,this paper believes that the Sino-US trade friction and the COVID-19 pandemic are the main factors leading to this conclusion,and on this basis,it puts forward relevant suggestions on improving the policy of China’s tax credit and tax rebate and makes prospects for future research on China’s tax credit and rebate.The study of this paper provides a valuable reference for policy makers to further improve our VAT tax system and implement the goal of "reducing taxes and fees".