Preferential Tax Policies Of China's High-tech Industry Research

Taxation preference is a flexible supplementation to the unification and relative fixation of systematic taxation. The value added tax levied in our country now is product value added tax, while the tax is not levied on all product sales and service. Due to the high rate of capital organic structure and low ratio of raw material against product cost in high tech enterprises, they therefore bear too high a value added tax. Taxation preference could compensate for such kind of systematic taxation shortcoming. Through a reasonable setting up of taxation preference policy, the role of speeding up the development of high tech industry could be played by practicing taxation preference.The paper first reviews precious results of theory and empirical research on high tech industry taxation preference, then it points out the major problems concerning the taxation preference toward the high tech industry in our country through a comparison between the taxation preference toward foreign investment enterprises and high tech enterprises, and thereafter it deals with the relationship between taxation preference and economic growth, the impact of informational asymmetry (including accountant informational distortion) on taxation preference and the importance of monitoring of taxation preference and rectification by taxation authorities and other relevant departments; finally it makes empirical analysis on the major taxation preference applicable ?? the current software developing enterprises, thus putting forward suggestions to reform on taxation preference toward the high-tech industry.