Research On Corporate Income Tax Incentive To Patent For Promoting Innovation

Patent is an important result of technological innovation and it is an important source of core competitiveness of enterprises. Patent play an increasingly important role to promote scientific and economic development."National Patent Development Strategy (2010-2020)" clearly point to "patent administrative departments should strengthen coordination and cooperation with relevant departments make full use of fiscal, taxation and financial policies to encourage more creativity and application essential patents." In view of this, there are some worthy of further research topics: tax policy should play what role in patent activities, what the effect, what problems exist in reality. Under the new environment the emergence of any new situation and new requirements, tax department should be how to optimize and improve the collection and management system in order to more effectively play the effect of tax policy. Based on theoretical analysis, in2008the implementation of the new "Corporate Income Tax Law" as the background, the paper analyze the impact of corporate tax breaks patent activity, combined with the development requirements of China’s patent, put forward the patent tax incentives proposed to further optimize recommended policy.This is the path of research:Chapter II summarizes the current situation and development of patent, pave the way for future study. Chapter III studies the theoretical basis of corproate income tax for patent, by collate and summarize the existing classical literature, theoretical analysis and mechanism patent preferential corporate income tax, and put forward a new theory explanation for the government launched proprietary corporate income tax motives. Chapter IV study of existing patent corporate income tax preferential policies. On the basis of a brief summary of our current corporate income tax system, the analysis focused on the benefit of corporate patent activity three preferential corporate income tax, calculated by quantitative and qualitative evaluation of a combination of methods, evaluation of the effect of the patent enterprise income tax preferential policies. Chapter V research on patent corporate income tax effect of case studies. The three companies selected samples by typical aspects of the enterprise as the unit of analysis, through multiple case studies, summarizes the effect of corporate income tax for different types of businesses in different patent activity. Chapter VI research on corporate income tax collection problems of patent. By means of prospect theory to analyze the causes of patents corporate income tax collection problems, and then given the appropriate policy recommendations. Chapter VII research on patent international tax avoidance and governance. Analyzesof the most typical of the current patent avoidance mode: Patent Holding Company, and proposed countermeasures for patent avoidance of governance. Chapter VIII comparative analysis of foreign R&D corporate income tax preferential enterprise and income tax preferential policies for patent, in order to provide reference for the improvement of China’s relevant policies. Chapter IX put forward concrete proposals to improve tax policies for patent policy and concludes the paper.The main research method:First, literature reading method. By collecting, sorting patent tax policy relevant literature to understand the state of the domestic and foreign patent tax research, ideas; analyze gaps in current patent tax research; sort of patent tax policy development and evolution of the course, learn economics, management, law the theories and concepts, summarized the theoretical foundation patent tax policy. Second, measurement analysis. A linear regression model using panel data analysis estimates the impact of tax incentives and incentive effects of patents generated. Meanwhile, the effective average tax rate model based on our current patent effective tax assessed. Third, the case study method, the analysis of the typical enterprise, understand the current problems in the patent tax and tax policies need to focus on supporting research and development in the patent, the use of the link. Discussion patent tax policy to promote the development of the role of patents and the need to improve the problem. Fourth, the comparative analysis. Summed up the similarities and differences of successful experience of typical national patent tax policy and trends patent tax policy.This paper argues that therer are three policies for China’s existing patent tax incentives. They are high-tech enterprise tax incentives, research and development expenses plus income deduction and transfer of technology breaks. In general these policies successfully implemented policy objectives and motivated corporate patent activity, but they needs to be adjusted to be closer to the actual needs of enterprises. Currently there are false declaration and patent avoidance behavior in corporate patent tax, it need to further improve the level of patent tax collection, standardized transfer pricing adjustments, strengthen international tax cooperation.International tax competition is a important reason of governments to introduction of tax incentives for patent. Compared with developed countries, China’s patent tax incentives also need to improve in order to promote R&D and industrialization of patent.The innovation of this article may be reflected in:First, pioneered by quantitative calculation and qualitative evaluation system analyzes the existing patent preferential corporate income tax, and its conclusions will help policy-makers on the one hand to grasp the effect of policy implementation and understanding the lack of the policy; on the other hand will also help enterprises accurately grasp the direction of rational use of positive incentives. Second, the use of case data characterize the relationship between corporate patent activity and corporate income tax, refined different effects on different types of enterprises of patent activity, enriching the perspective of patent analysis corporate income tax preferential policies. Third, study the effect of the impact of tax collection and tax incentives as an indispensable factor in the execution of the current patent imputation of corporate income tax incentives in the common problems, abstracted their common features, studied by means of the classical theory, which Conclusion on the one hand, on theory, to explain the causes of the current corporate income tax collection issues patents, on the other hand help solve the problem of false declarations in practice, thus promoting the corporate income tax collection to improve the level of patent. Fourth, prospectively posed the problem of patent avoidance of harmful effects of tax incentives to patent, qualitative analysis of the typical model of patent avoidance and made a preliminary countermeasures to help our country to develop targeted preventive measures. Fifth, on the basis of theoretical and empirical, analysis of the effect of restricting patent tax incentive policies defects, drawing the actual practice of some typical countries, summarized recommendations for improvement of the current tax system applicable to a patent under preferential tax policies.Significance of this study lies:on the theoretical level, this article is a useful complement to existing research and improvement, help-depth understanding of the role of taxation to promote scientific and technological innovation, the patent tax incentives to help grasp the structure, mechanisms and environment. Help to further clarify the role of tax policy for the national innovation patent practice played. On the practical level, this paper researched and discussed on Corporate Income Tax Law of the existing corporate patent activity which adjustments were made, how the incentive effect, what are the problems? How to continue to optimize the patent preferential corporate income tax and other issues involed corporate patenting activity in new situations and problems, and help improve future improvements related policies.