R&D Tax Incentives In China

Tax expenditure, which is one of the main subjects concerned by modern Public Finance and Taxation, is the new method to bring tax incentives into efiFect It has significance of improving the effectiveness of tax incentives. This dissertation holds the opinion that China need R&D tax incentives and studied how to use tax expenditure to carry on tax incentive policy.Firstly, the tax expenditure theory is studied. The situation in China is taken into consideration when the main issues of applying the theory are raised. When the tax expenditure theory is defined, the relationship between tax preference and tax expenditure is analyzed. The dissertation raised the standpoints that tax preference and tax expenditure both are government's tax incentive method to support taxpayer. Tax expenditure is the innovative support method while tax preference is the rough support method By normalizing tax preference and using budget to manage, the government can transform tax preference into tax expenditure. The great defects of tax preference could be remedied As a tax incentive way, the calculating method and budget management is the predominance of tax expenditure. Therefore we should apply tax expenditure to make the tax incentive more effective and make great fruits.The R&D situation in China is studied by using the R&D tax incentive theory. The dissertation holds the opinion that R&D-Expenditure /GDP is the core economic index and important monitor index for R&D situation Along with the transform of scientific research institutes, company has become the principal part of R&D investment. Because the natural R&D investment of companies cannot meet the needs of our society, government's economic supports are required By comparing direct finance expenditure with tax expenditure, the dissertate believe tax expenditure can do better in leveraging R&D investment of companies and further more in leveraging R&D. In the meantime, because non-profit scientific research institute (for example academy of sciences) and universities also have taxable behavior, tax incentive can also support them.The necessity of doing R&D tax incentive by tax expenditure way is expatiated By analyzing the tax preference concerning science and technology, we summarized the problems in this field as too many items, the monotony of tax preference, covering only a few R&D stages, not definitude R&D as incentive target, lack of cost and effect evaluation method and standardization method This dissertation holds the opinion that in the premise of setting R&D as the support target, tax expenditure can solve above-mentioned problems and make tax incentive more effective logically.To validating the opinion, and understanding how to fulfill the R&D effective tax incentive in China, this dissertation draft three stages based on the R&D expenditure and R&D-Expenditure /GDP in order to use other countries' R&D tax incentive experience in corresponding stage as a reference.After orientation of China by above mentioned three stages, the dissertation considers China just get into the R&D-Expenditure/GDP promoting stage. In this stage, China should support R&D greatly by R&D tax incentives. The principle and steps of applying R&D tax incentive in China is established The tax expenditure is in its trail stage in China, could not be implemented as a whole. At the same time, R&D is in dire need of effective tax incentive. The dissertation holds the opinion that tax expenditure should be used onR&D firstly.Through studying, the dissertation believes that China should use the tax expenditure managing system to put former science and technology tax preferences in order, to regulating the expenditure, raise monitoring efficiency and evaluate the effect The approach and steps to establish R&D tax expenditure in China is raised in the end...