Study On Small Low-Profit Corporate Income Tax Credit System Of China

The outbreak of the financial crisis impact on China's economy significantly. Relatively large and medium enterprises, small low-profit enterprises are widely distributed,with a large number. Giving small low-profit profit enterprises more tax incentives to actively play its role in turning around small boat of great significance for ease employment pressure, social stability and economic recovery. This paper will start from the theoretical foundation of small low-profit enterprise income tax preferential system to explore the crux of the system and seek the appropriate reform.This body consists of three parts:The first part starts from the basic theory of tax laws, analysis the theoretical foundation of small low-profit enterprise income tax preferential system all aspectly. Pointing out that the income tax benefits to small low-profit enterpris is not stalling tactics to cope with global financial crisis, but the specific embodiment of the idea of tax fairness in our tax reform and the specific requirements of the principle of tax neutrality in supporting the development of small low-profit enterpris. China's small low-profit enterprise income tax system's establishment is a concrete manifestation of the principle of efficiency of China's tax laws to maximize the overall benefit of society.The second part make an evaluation on legislation and the existing problems in the process of implementation of our small low-profit enterprise income tax preferential system. First, making sure of our income tax preferential system of small low-profit enterprises reduce the burden of small low-profit enterprises and bring good social benefits. Secondly, pointing out that the "Enterprise Income Tax Law" and its implementing regulations exist the problems that the concept of small low-profit enterprise is unclear, the preferential margin of preference is not enough, and the preferential benefit way is unitary。Meanwhile, the "Enterprise Income Tax Law" tax concessions on the small low-profit enterprise is limited to audit collection enterprise, ignoring the survival needs of approved collection small low-profit enterprise, contrary to the principle of fairness of tax laws.The third part mahe some suggestions for improvement of China's small low-profit enterprise income tax credit system based on the theoretical analysis and reality system research。First, the legislation express clearly the relationship between small low-profit enterprise, small businesses and micro-enterprises so that the various policies to support SMEs can link with each other. Second, giveing the economic backward areas and newly established small low-profit enterprise special tax benefits, better support for small low-profit enterprise which in the difficulties of production and operation. Finally, reforming the existing regulations, implement small low-profit enterprises investment credit policy so that solve the problem of small low-profit enterprise'shortage of funds.