A Study On Preferential Tax Policies For Small Enterprises In China

Small and micro businesses in our country have been developed rapidly since China’s reform and opening up, they also have already been an important force to promote national economy and social development and have made great contributions to the development of national economy. Small and micro businesses have incomparable advantages over large enterprises in various aspects such as accelerating technological innovation, maintaining market vitality, improving economic benefit, facilitating fair competition, and moreover, small and micro businesses particularly play an important and irreplaceable role in some aspects such as increasing the fiscal revenue, satisfying the social requirements, job enlargement, maintaining social stability and invigorating the urban and rural economy, etc.However, due to impact of history and their own factors on the development of small and micro businesses, they also have several shortcomings such as small in scale, unadvanced technical equipment, weak competitiveness and poor anti-risk capacity so that they are disadvantaged in the market. For this, our country has the obligations and responsibilities to support, guide and protect them. Among all of the policies of governmental support and protection, preferential tax policy is undoubtedly a very effective macro-control measure. In recent years, a series of existing preferential tax policies for small and micro businesses has played a positive role, but generally speaking, much attention has been paid to policy making but not the effect of policy implementation and the research on tax collection and management, and meanwhile small and micro businesses’ demand for tax policies has been ignored.Based on the sound and long-term growth of small and micro businesses in our country, the status quo of small and micro businesses’ development and problems has been analyzed in this paper with a breakthrough point of the development status and empirical investigation about these small and micro businesses in Luliang County. On this basis of this and learning from foreign experience in supporting the development of small and micro businesses, the specific measures to improve the preferential tax policies for these enterprises in our country are put forward to make tax policy play a better and more important role in supporting the development of small and micro businesses in China.