Study On Tax Policy For Technological Innovation Of SMEs

Currently there are a large number of small and medium enterprises (SMEs)in every country of the world and SMEs have become an very important factor in economic growth. In order to adapt to the new competitive environment and rules ,states are working hard to improve the core competitiveness measured by the ability of technological innovation which has become the key factors that decide the success or failure of business competition in the market. SMEs need to seize opportunities , dare to challenge and improve enterprise's competitive power fundamentally through independent innovation so as to survive and develop in fierce competition. However, with constraints from fund, talented person, technical service it is difficult for SMEs to solve problems of technological innovation without government's support. Preferential tax policies play an important role in many countries' innovation incentive policies, and its incentives for innovation has also been test and verified in many aspects. Since reform and opening up, SMEs in our country is playing an increasingly important role at Economic prosperity, increasing employment, promoting innovation, etc. China has introduced corresponding laws and regulations to promote the development of high-tech and the promotion of independent innovation and tax policies for SMEs' technological innovation also played a role in some. But compared with developed countries, China's technological innovation policy for SMEs has to be further improved.Through the Mechanism analysis of tax support policy ,the Current Situation about the status of technological innovation and it's taxation policy of china's SMEs, and the experience of developed countries we can Put forward countermeasures and suggestions to improve our tax policies for small and medium enterprises in technological innovation and favorable external environment for its rapid development.Text is divided into five chapters: Chapter 1 is the foreword, introduced the background and significance, related definition, literature review, the contents and methods of research and innovation of this article. Literature Review of this article compiled some of the relevant technological innovation theory from both domestic and foreign, the role of SMEs' technological innovation and research of government'tax policy support for SMEs'technological innovation. Based on the introduction of characteristics of SMEs'technological innovation ,chapter II analysis the importance , means and mechanism of government support of tax policy to SMEs' technological innovation.Chapter III analyzes the status of SMEs' technological innovation in our country and also evaluate and point out the shortcome of tax policy for it. Chapter IV summarizes the experience to prompt SMEs' technological innovation combined with the specific circumstances of such tax policy adopt by developed countries Chapter V analysis the inadequate of China's tax incentives for SMEs' technological innovation, then prompt the corresponding countermeasures and suggestions.This article considers it is necessary to further improve the preferential tax policies about corporate income tax, personal income tax, exert tax incentives to increase the investment in both R&D and innovation, and to improve the quality of creative talents .by doing this Through the above measures can make SMEs become the main body of independent innovation and improve scientific and technological level of our country.Through material collection and analysis, the author found that most of the R&D expenditures in SMEs come from the introduction of exotic equipment and software, and to become the main body of independent innovation, they must increase the input of independent research and development. So the government could incentive the input by improving the tax policy. Dealing with the technology development costs, this paper found that not only tax credits but forwards and backwards moving deductions are feasible. For small businesses which meet the conditions can take the way of tax rebate this year, so that they can receive timely funds support and enhance the enthusiasm of investment in research and development.