A Study On The Tax Policy To Promote The Development Of Small And Medium - Sized Enterprises In China

Small and medium enterprises(SMEs) have become an important force in stabling economic growth and creating jobs. They are supported by the state and as such gained more concerns. Due to their characteristics, SMEs have faced many problems, mainly related to business, finance and development that hinder their development. To solve the problems faced by SMEs, especially for small and micro enterprises, the state has introduced a number of tax policies, primarily in the form of preferential tax policies to promote the small and micro enterprises. Constantly adjust preferential tax policies reflects the attitude and determination of the government. However it also shows that the policies are non-standard and there is a lack of policy stability and systemic support. Therefore, it is necessary to sort out the relevant tax policies and create a favorable tax environment for the development of SMEs.These tax policies typically promote the adjustment and distribution. The correct application of tax policy can reduce the corporate tax burden, improve production efficiency, guide the direction of enterprises and optimize the industrial structure. This article uses the life-cycle theory, where in the process of enterprise development is divided into three periods, which includes creation stage, development period and stable period, to sort and analyze tax policies. This is combined with analysis of the actual operation of Yunnan SMEs, Pointied out the shortcomings where appear in Yunnan SMEs, and also analysis of related tax policies in other countries. Through the combined analysis of the situation in Yunnan province and similar tax policies abroad. This paper put forward some proposals where from the objectives, specific measures to improve our tax structure and further promote the development of SMEs.