A Study On Preferential Tax Policies For Enterprise Income Tax In China

Research and development activities play an important role in the process of enterprise innovation. The high risk and uncertainty of R&D and the fruits of R&D spillover, decided that enterprise’s R&D activities need support from the government. Due to the characteristics of the marketability, universality and certainty of tax policy, more and more countries use tax incentive policies as an important policy tool to promote enterprise to develop. At present, there are three main tax incentives of promoting international R&D favored by countries, are respectively additional deduction, tax credits, and “patent box”. Additional deduction focuses on research and development process to grant enterprises additional expenditure deduction, tax credits means to eliminate the influence of corporate income tax rate, directly grant enterprise the tax credit, “patent box” policy is through the tax relief of the transfer from the technology to product, to achieve the purpose of promoting enterprise R&D activities.This paper, on the basis of the analyzing R&D expenditure and the present researchers amounts of R&D in China, through analyzing research and development current incentive policies in corporate income tax, points out problems existing in current relevant tax incentives, and from the perspective of tax factors, compares the additional deduction tax credits with “patent box” of other countries in the world respectively, then summarizes the R&D tax incentive policies of foreign countries, uses the international experience for reference, comes up with the suggestions to perfect our country’s R&D corporate income tax incentives, such as granting small and medium-sized enterprises special incentives, adjusting the phases of tax incentives, carrying on various incentives and so on.