Legal Issues Of SME Tax Incentives In China

In any national economic structure, the small and medium enterprises play anirreplaceable role in increasing employment, promoting economic growth, scienceand technology innovation and social harmony and stability, to the national economyand social development, which has an important strategic significance. In general,thenations are to build a legal system of tax incentives to promote the development ofsmall and medium-sized enterprises. China always pay attention to tax breaks forsmall and medium enterprises since the reform and opening-up policy,whichpromotes the healthy and rapid development of domestic small and medium-sizedenterprises.In recent years, small and medium-sized enterprises increased obviously, andprofit more. Due to their own defects, tax breaks could not cover universal all theenterprises. At present, Tax system is not preferential enough, enterprise’s tax burdenis still heavy and they can not get the preferential tax benefits to the greatest extent.Tax incentives is the national macroeconomic regulation and control importantway on the tax, there is close relationship between the development of small andmedium-sized enterprises and tax breaks, there is no doubt that to build perfect legalsystem will greatly enhance the enthusiasm of enterprises and promote.This article from the national conditions of our country, and in such a bigbackground of social transformation of small and medium-sized enterprisedevelopment present situation and the current tax system, The importance of smalland medium-sized enterprise tax preferential legal system is put forward, from theoryand practice.Summarized should build small and medium-sized enterprise taxpreferential legal system to support the development of small and medium-sizedenterprises. On this basis, this paper draw lessons from the use of tax incentives toprotect and support the successful experience of the development of small andmedium-sized enterprises, advocated through reform and perfect the current taxpreferential system, optimize the tax service, explore with Chinese characteristics andbuild a set of legal system of tax incentives to promote the development of small andmedium-sized enterprises, build up in order to promote the development of small andmedium-sized enterprises as the goal system of preferential tax policy system. Based on the above, this paper also analyse the macroeconomic regulation andcontrol in the field of tax incentives, and define preferential tax as governmentspending, on this basis to the discussion of legal problems of government tax breaks,this paper expect to build the corresponding preferential tax law system.