Study Of Small Profit-making Enterprise Income Tax Preferential Policy

Small micro enterprises play a very important role in the market economy in many ways, such as meeting the demand of production and living, creating emplacement opportunities, resist economic risk and, maintaining social stability. What’s more, they have shew their powerful functions in expanding employment and boosting market confidence under the background of the world economy continues to weaken since the2008International Financial Crisis. However, small micro enterprises have their own shortages like insufficient funds, extensive management, simple product structure, low profits, and poor ability to resist risks.Preferential tax policy is one of effective means to regulate promoting the development of small micro enterprises, however, problems and gap still exist compare with the expected policy effects.In this paper, the author took small enterprises in Yangpu, Hainan province as the research instance, evaluated the performance of current income tax preferential policies from the view of public management, figured out problems and discussed reasons in the process of policies implementation, and finally put forward the proposal in carrying out the Income tax preferential policies effectively with three aspects, such as improving policies, perfecting the way of implementing and optimizing the implementing environment, aiming to provide a beneficial reference on implementing income tax preferential policies for small micro firms effectively.