Legal System Of Preferential Taxation For Sme Development

In recent years ,SMEs (Small and Medium Enterprises)are very important in economic and social fields of China. In those fields SMEs play an irreplaceable role. Chinese SMEs have encountered unprecedented challenges and opportunities because of the economic globalization and science and technology updating. Such as those questions diversification in economic composition, the lack of modern enterprise management system, weak in anti-risk ability that making the living environment of SMEs become more difficult. So the state provides a large of measures to help SMEs which is most important measure is preferential taxation policy. They are very useful for adjusting economic structure and achieving the goal of coordinated development of economy. Through the implementation of preferential taxation policy, not only embodied the support and guide for SMEs which is come form the state, but also enables SMEs to get the immediate benefits and increase its survival and development ability. Implementation of tax-reduction and preferential taxation expand the business profit margins and improve the ability of enterprise's development and technical updates. In addition, SMEs is at a disadvantage position in market competition and a lot of problems is not good for SMES'development which are low product competitiveness, industrial backwardness, lack of management capacity and so on. Preferential tax system can guide SMEs to improve their competitiveness with cost advantage in the market , optimize the industrial structure, conserver energy, improve the technological of products, establish the modern enterprise management mode , enhance their survival capacity and healthy development. But now SEMS can not well enjoy these tax benefits and even got nothing from tthe preferential taxation system because of some problems in SMEs'standard, low level of preferential taxation system, lack of targeted preferential tax policy. This article will provide some advices to improve the preferential taxation legal system which is based on foreign country's experiences and our country's practice situation.