Empirical Study Of Tax Incentives In R&D

In the global competitive environment of Economic integration, Chinese enterprises are facing serious challenges from foreign multinational companies. In order to encourage innovation and create an environment to encourage enterprises to become the mainstay of technological innovation, and strive to build an innovation-oriented country, China has successively adopted a series of policy to improve the high-tech industries, and promoting technical progress, tax incentives to improve corporate R & D investment is one of the major initiatives.Since the introduction of corporate income tax in 1994, China's government corporate income tax collection and management approaches gradually expanded its R & D tax concession, and by the new Enterprise Income Tax Law of 2008, the final form of law clearly and expanded R & D tax incentives policy. In this process, China's R & D tax incentive policy through four major expansion of the major concessions, then, income tax incentives for R & D incentives to the intended effect? This is the concern of policy makers, but also attempts of this article.In this paper, we take pharmaceutical, biotechnology and information technology industry in the two major high-tech industry for example, in 2006 the "Ministry of Finance, State Administration of Taxation on the promotion of technological progress on financial and tax issues," and 2008's "People's Corporate Income Tax Law of the Republic "on the corporate R & D incentives for the study, empirical test of the R & D tax incentives encourage companies to expand is to increase R & D spending, improve the R & D investment intensity. The results showed that:in 2006 a significant tax incentives to promote enterprise R & D investment intensity, while in 2008 the tax incentives did not play a significant effect, this study has concluded that China's R & D costs to pre-tax deduction plus effectiveness of tax incentives. These research results not only enrich R & D tax incentive policy literature, but also be useful for policy makers to provide a theoretical basis.This paper consists of five chapters. The first chapter is an introduction, describes the background, purpose, significance, methods, related to definition of the concept and the main idea of research ideas; second chapter is based on R & D Tax Incentives in the theoretical analysis of the world typical of an innovative country R & D tax Incentive policies and our R & D tax incentives the development of a sort, review; the third chapter of this research enterprises involved in the ability of the theory described, and reviewed the tax incentives and other factors on the R & D incentives of the main research literature; s hypothesis put forward four chapters, describes the sample selection and variable selection process; chapter test and analysis of empirical results.