Study On Effect Of Reduction And Exemption Of Enterprise Income Tax In Zhejiang Province

In the process of giving impetus to advance of technology and developing of high-technology industry, government plays an increasingly important role. Reduction and exemption of enterprise income tax is one of the special economic policies that government could use. Through analyzing the effect of reduction and exemption of enterprise income tax on high-technology enterprises in Zhejiang province, this article try hard to provide reference to tax authorities in Zhejiang province so the tax authorities can more correctly implement the policy.Firstly, this article analyzes the overall situation of implementing reduction and exemption of enterprise income tax special for high-technology enterprises in Zhejiang province in recent years, then studies total enterprise income tax revenue, industry structure and different systems of ownership of high-technology enterprises as well as situation of reduction and exemption of enterprise income tax of some high-technology enterprises. Base on above analysis and study, this article puts some problems that exist in implementing national preferential policy about tax reduction and exemption in the aspects of investment, independent innovation and tax credit for equipments made in China of high-technology enterprises in Zhejiang province.Base on learning the successful experience of adopting reduction and exemption of enterprise income tax special for high-technology enterprises, this article put forwards relevant suggestions about establishing scientific, reasonable, efficient system and operation mechanism of reduction and exemption of enterprise income tax from following 4 aspects: (i) stipulate the preferential policy about reduction and exemption of enterprise income tax in order to improve investment of high-technology enterprises; (ii) optimize tax credit for equipments made in China in the process of technology reconstruction; (iii) encourage independent innovation of domestic enterprises; (iv) coordinate policies about reduction and exemption of enterprise income tax in different regions and industries.