A Study On Finance And Taxation Support For Promoting The Development Of Small And Medium-sized Enterprises

Small and medium-sized enterprises (SMEs) are important power in promoting social and economic development both in developed countries and developing countries from worldwide. How to promote the development of SMEs has become a global issue, all countries are taking seriously, and as a national economic policy key. Since the reform and opening in China for over 30 years, with the development of economy, SMEs are springing up, development rapidly, and have became the important power to promote the development of national economic and maintenance the social harmony.Although SMEs scales are small, they play a pivotal role in the national economy and social development because of their enormous quantity and flexible operation. SMEs also play an irreplaceable role in creating national income, employment opportunities, maintaining social stability, promoting technological innovations and expanding exports, and so on. However, SMEs also met with many difficulties in the development process. On one hand, SMEs have some difficulties internally, for example:lack of funds, the talent shortage, the information construction backwardness, etc. On the other hand, there are some factors such as social concept, system, policy environment which restrict the development of SMEs. If these problems can not properly solve, will not only affect the healthy development of SMEs, more will affect the prospect of the overall development of the economic society. Therefore, promoting the development of SMEs vigorously has important strategic meaning for building the well-off and harmonious society.For many years, the Chinese government has being paying great attention and support to the development of SMEs. Recently, because of the international financial crisis, SMEs are facing with new unprecedented challenges. In order to solve these problems, promote SME development, the government has made a lot of finance and tax polices. Especially in 2003, we are establishing a construction and perfection service system for SMEs after "People's Republic of China Small and Medium-sized Enterprises Promotion Law" had been promulgated and implemented, which will promote the development of SMEs.Fiscal support is one of the most direct and effective way in the service system for SMEs. Fiscal support depends mainly on financial subsidy, tax preference, fiscal investment and loan, government procurement, which will promote SMEs by external market and internal organization and management. Generally speaking, the content of current fiscal policy support is relatively narrow which mostly pay more attention to fund subsidy, not a multidimensional fiscal support system. Therefore, this paper will starting from public finance, take the finance and tax policies as a system to study, first analyze the problems of SMEs and the current policies to support SMEs, and find some problems. Then on the basis of the foreign advanced experience, I will put forward some concrete measures for improvement, in order to improve our practice of finance and tax policies and establish a complete system which can promote the development of SMEs.In addition, this paper takes Huaining county for example. As a county in Anhui province which economy develops fairly well, it has seen rapid economic development in the 21st century, SMEs can't be ignored and has an irreplaceable function in county economy. On the basis of the present situation of SME in Huaining, evaluates the current situation of the operation of service to SMEs, find and point out existent problems in the finance and tax polices. Through the analysis of problems combined with the actual development of the local economy, made a number of targeted measures which hoping to making a positive contribution to Huaining county economy and SMEs.