Tax Preference Promotion For Technological Innovation In Companies

Enterprise independent innovation plays a very important role in the technology development and state development. Scientific and reasonable technological innovation policy can provide favorable conditions for R&D in enterprises. Through comparative study and case study, this paper systematically analyses the current situation and existing problems in the practice of the tax preference policies in China. And then this paper presents the concrete advice and perspective about them.Firstly, this paper starts with the theoretical analysis of tax preference promotion for technological innovation. As an important measure taken by governments to regulate economy, the tax preference policy can overcome the spillover, information asymmetry and high-risk in the R&D activities. Therefore, many countries have promoted their technological innovation manifestly through designing effectual tax preference policies or using accelerated amortization, tax credit, beneficial tariff and other policy tools.Secondly, after a review of relevant literatures, this paper has summarized both the domestic and international tax policies. Besides, it also has done some enterprises research. At present, our country has already established a tax incentive policy for R&D, which consists mainly of income tax as well as VAT & business tax. However, there are also some policy disadvantages in China compared with developed countries. For example, China doesn't have diversified preferential policy tools. The production-based VAT is not favorable to the innovation inputs and privileged tax policy still exists.At last, based on the above analysis and the new 2008 tax law, this paper has also proposed some suggestions, such as improving the whole taxation system, optimizing the tax categories (such as income tax, VAT, business tax & property tax, etc.), establishing tax policies to encourage ventral capital on R&D and stepping up technical personnel training.