A Study Of Corporate Income Tax Policy On Promoting The Development Of Small And Micro Business

In the year of2011, the Ministry of Industry and Information Technology (MIIT),the National Bureau of Statistics (NBS), the National Development and ReformCommission (NDRC) and Ministry of Finance (MF) jointly issued The Notification onIssuing Row Type Standard of the Small and Medium-sized Enterprises, defining themicro business for the first time, distinguishing it from small and medium-sizedenterprises, as well as separating the concept of small and micro business from the smalland medium-sized enterprises. By the end of2013, there are11.6987million small andmicro businesses in whole China, accounting for76.57%of the total number ofenterprises. There is no doubt that small and micro business play an important role inthe national economy, and only the healthy development of small and micro businesscan guarantee the sustainable development of the national economy at the same time. Atpresent, due to the reasons of various cost of raw materials, rising labor costs,environmental governance costs, and the international financial crisis, the developmentof small and micro business is in trouble，which asks the Chinese government to put theissue of small and micro business’s development in an important strategic position.Supporting the development of small and micro business’s tax policy is one of theimportant means. As one of the main tax burden from small and micro business,perfecting the policy of corporate income tax to promote the development of small andmicro business becomes more important.This paper consists of six parts.The first part introduces the background and significance of selecting this topic,carding the research status of research contents in this paper, briefing the research ideas,framework and methods.The second part describes the present status of small and micro business. First todefine the concept of small and micro business, to analyze current main characteristicsof small and micro business in our country, point out the difficulties of small and microbusiness and analyze the necessity to promote the development of small and microbusiness in the final of this part.The third part mainly introduces the current corporate income tax policy topromote the development of small and micro business, and analyses the policies in a brief on the basis of the tax statistics2011-2013in XX city. From the analysis results,small profit-making business’s corporate income tax policy does not play a good role inpromoting the development of small and micro business. In other preferential policies topromote the development of small and micro business, there are limits on how policieshigh-tech enterprises tax cuts and development costs additional deduction can do topromote the development of small and micro high-tech business. For small and microbusiness, the policy that benefited the most is additional deduction of wages for thedisabled， which reflects the promotion of employment that the small and microbusiness have made for the disabled from the other side.The fourth part analyses problems of the current small and micro business’scorporate income tax policy from the angle of legislation and the concrete measures oftax policy. The legislative level too low and the industrial orientation not clear are themain problems from legislation side. From the concrete measures side, directpreferences too small, less indirect preferential way, which is not conducive toencourage the science and technology innovation of small and micro business and lackof corporate income tax preferential policies that can promote small and microbusiness’s human resources development.The fifth part takes small and micro business’s corporate income tax policy fromabroad for reference, summarizing the experience from other countries to promote thedevelopment of small and micro business’s corporate income tax policy, including theexperience of legislation and the specific measures.The sixth part puts forward to the suggestion perfect our corporate income taxpolicy to promote the development of small and micro business which can be startedfrom the two aspects of legislation and specific measures. The suggestions are firstly tofollow the principles of the tax revenue law, taxation fair and industry guide in theprocess of perfecting corporate income tax policy to promote the development of smalland micro business and secondly to improve the specific measures of small and microbusiness, intensify the preferential benefit directly, rich indirect preferential way,promote the technology innovation and improve the human resources developmentcorporate income tax policies of the small and micro business.