A Study On The Effect Of Accelerated Depreciation Tax Policy On Enterprise Fixed Asset Investment

In recent years,economic growth has slowed down,facing downward pressure,and domestic demand has declined.At the same time,due to the impact of the global economic crisis,foreign demand is down,and our export is reduced accordingly.In addition,many industries are facing the dilemma of overcapacity,which leads to lower prices of products and consequently lower profits of enterprises.These factors have led to the continuous decline in the growth rate of China’s fixed asset investment.In order to expand domestic demand,form new growth drivers,the Chinese government promulgated the policy of Accelerated Depreciation of Fixed Assets in 2014.This paper takes the《Notice of the Ministry of Finance and the State Administration of Taxation on Improving the Enterprise Income Tax Policy for Accelerated Depreciation of Fixed Assets》(No.75 of Finance and Taxation [2014])as the entry point,and makes a qualitative and quantitative study on the impact and utility of the policy.Firstly,this paper analyzes the background and purpose of the introduction of the policy and comprehensively combs the development process of Accelerated Depreciation Policy of Fixed Assets.Secondly,based on the capital use cost model,and the theory of tax incentive theory analysis the policy impact on business investment,and then from the mediation effect of cash flow and the adjustment of the ownership concentration effect two aspects analyzes the affect the possible path of enterprise scale of investment in fixed assets.Thirdly,this paper establishes a difference-in-difference model(DID)to study the fixed asset investment scale of enterprises.At the same time,this paper establishes the mediating effect and moderating effect test model on the scale of enterprise fixed assets investment,and verifies the specific impact mechanism of the policy.Then this paper analyzes the heterogeneity of policies from four dimensions: enterprise ownership,profit and loss,government subsidies and overall tax burden.The specific research conclusions of this paper are as follows: First,Accelerated Depreciation Policy has significantly promoted the improvement of fixed asset investment scale of pilot enterprises.Second,the accelerated depreciation policy stimulates enterprises to expand fixed asset investment by increasing the cash flow of enterprises,and the intensity of this effect is regulated by the ownership concentration.Thirdly,the accelerated depreciation policy has a more obvious effect on the fixed asset investment of non-state-owned enterprises than state-owned enterprises.It can significantly promote the investment scale of fixed assets in profit enterprises,but not in loss enterprises.The promotion effect on fixed asset investment of enterprises with low tax burden is more significant than that of enterprises with high tax burden.The effect of fixed asset investment on enterprises receiving more government subsidies is more obvious than that on enterprises receiving less government subsidies.So,first,we need to expand policy coverage.Industries closely related to people’s livelihood,such as water conservancy,environmental and public facilities management,transportation,storage and postal services,and environment-friendly investment equipment will be included in the pilot industries.Second,we need to increase preferential policies.Relaxing the provisions on the minimum depreciation life in the method of shortening the fixed life,allowing enterprises to calculate and withdraw the depreciation of fixed assets at 50% of the minimum depreciation life prescribed by the tax law.Third,we will improve differentiated and accelerated depreciation policies.Enhancing the applicability of policies to private enterprises;Explore policies and measures for loss-making enterprises.Fourth,we will take multiple measures and use them in a coordinated manner,and superimpose preferential policies to release dividends.We should improve supporting credit measures and preferential tax policies,increase government subsidies to strategic emerging industries,enhance the cross-influence intensity between policies,reduce the burden on enterprises,and fully release the dividend of policies.