The Research Of Tax Preferences Of High-tech Enterprises In China

With the development of economy and society, technical factors became more and more important in nowadays. The competitiveness of enterprises largely reflected in technology competition. In the other hand, the state's influence in the international community, the country's future economic development and the position in the international states all increasingly dependent on the level of research and development of high-tech enterprises. Good performance of high-tech enterprise plays crucial role in a country's economic and social development. Nowadays governments are aware of this, have taken different measures to encourage the development of domestic high-tech enterprises. Tax preferences are one of the most important aspects.In China, a series of taxation preference have been established, and these policies have been playing a significant role in the development of the high-tech industry indeed, for example the "PRC Enterprise Income Tax Law" which entry into force in January 1,2008 contains a wide range of preferential policies for high-tech enterprises. These taxation preference Played a significant Effect in the economic development. Nevertheless there are still statistics shows that China's corporate R&D expenditure accounts for the low proportion of sales revenue at around 0.7%, while in the major developed countries, this indicator has reached 5%. The data indirect displayed that tax preferences of high-tech enterprises in China still exist a large number of problems. In addition, as a later start we are still not enough in this field and there are also a big gap Compared with the developed countries that have more mature and effectively tax preferences system. Besides that the phenomenon of abuse of a number of tax preference are still exist. Thereby, this paper begins with the analysis of tax preference legislation theory and also compare with the advanced Laws and regulations of tax preference in the developed countries, after these analysis and comparison we can find the problems in current tax preferences rules and put forward constructive views on the improvement, then help developing a more effective system of tax preference to promote the development of high-tech enterprises in China. The thesis is composed of three parts:preface, four chapters and conclusion.The first chapter analyses from the perspective of tax preference legitimacy, elaborate the theory and practical reason of high-tech enterprises based on tax preference and also explained the importance of tax preference which play a positive role in high-tech business development. This chapter gives a theoretic foundation for the following parts.The second chapter analyses from the perspective of comparative Law of tax preference. First, introduce advanced experiences of developing and developed countries in preferential tax policy, then describes the present situation of taxation preference of high-tech enterprises in China, and points out the shortages and system limitations. These advanced experiences of preferential tax policy can help improving our system of tax preferences of high-tech enterprises and also can help promoting the development of high-tech enterprises in China.Chapter three summed up problems in tax preferences of high-tech enterprises in China, this will give us a chance to improve the tax preference legislation in the future.Under the front parts of the analysis the last chapter of the paper put forward some suggestions to establish a sound system of high-tech companies in the filed of the tax preferences, such as improving the legal system of tax preferences, establishing tax payment administration management. Tax payment administration management can help strengthening the control of effects and payment scales of preferential taxes in system and evaluates the effects of every preferential tax and cancels those which have no effects and do not accomplish goals. This chapter also suggests extensive ways of the tax preferences and fulfills Special provisions of the tax preferences in the Small and Medium Enterprises area. Of course, improving the system of tax preferences of high-tech enterprises are not completed in a day, it needs us to improve constantly in the process of legislation and practice. It also needs to consider with China's actual national conditions, help promoting high-tech enterprises developing.