Study On Influences Of Tax Incentives On Companies' R&D Investment

Science and technology is the foundation of national prosperity, innovation is the soul of national progress. Government work report in this year's NPC&CPPCC pointed out specifically that in 2020. we strive to make breakthroughs in frontier areas. The whole society R&D input intensity must reach 2.5%, and the contribution rate of scientific and technological progress to economic growth must reach 60%. To achieve this goal, We should not only pay attention to market which is called "invisible hand", but also pay attention to the government which is called "visible hand". As one of the important macroeconomic control means, tax incentive is inclusive and more likely to use the power of the company and the market, it is generally adopted by countries around the world. In nearly 40 years of reform and opening up, our government introduce tax preferential policy constantly in order to stimulate the independent research and development of the company, and in recent years, increasing the use of tax policies encourage companies to carry out research and development activities. So to do a comprehensive and in-depth research on incentive effect of preferential tax policies on company R&D activities is significant to formulate and adjust our R&D tax preferential policies to better play the role of adjusting the national economy.This paper is based on research results of scholars both at home and abroad, together with the present situation of research and development activities and preferential tax policies in China, and analyze R&D tax preferential policy's incentive mechanism and incentive effect on the company.The whole paper consists of five chapters.The first chapter is the introduction of the whole paper. We made a brief description of the research background. We review domestic and foreign literature points of view from 3 aspects:the relationship between the preferential tax policy and company's R&D, differences in incentives of tax preferential policies and the comparison of domestic and foreign R&D tax preferential policy. This part lays the foundation for further research of this paper.The second chapter is theoretical analysis of tax preferential policy to encourage companies' R&D. First of all,we analyze the characteristics of the research results and development activities, which provides a theoretical premise to government intervention. Secondly, we analyze mechanism of companies to increase R&D input from reducing cost, increasing revenue and reducing the risks.The third chapter describes and analyzes the current situation of the R&D of our country, and find out the problems. And then combs the domestic and foreign existing R&D tax preferential policies, and carries on the comparison and analysis.The fourth chapter selects listed companies which announced the development costs in 2011-2014 in our country, and do an empirical research on the incentive of preferential tax for company R&D input,. Then do another three empirical research in the industry, region, equity structure respectively, to analyze the preferential tax incentive differentiation.The fifth chapter puts forward proposals to perfect our R&D tax preferential policies.Research conclusion of this paper lies in:the preferential tax policy to the companies' R&D investment has significant positive incentive effect, but the incentive effect has obvious differences. From industry, preferential tax policy's incentive effect is most obvious in heavy industry and machinery manufacturing. From region, preferential tax policy's incentive effect is most obvious in eastern region. From equity, preferential tax policy's incentive effect is more obvious to state-owned shares companies than no state-owned shares companies. Our government should take these aspects into account when making tax policies. They should not only make "universal" preferential tax policies, but also make "special" preferential tax policies.The innovation points of this paper lies in (1)In terms of research angle of view, we stand in the angle of the micro companies, and companies are no longer limited to special industries or new high-technology companies, but include all listed companies published R&D costs, in order to a comprehensive research on the implementation of the preferential tax policy;(2)We analyze the difference of the preferential tax policy incentives from industry, region, and equity structure, trying to find out the reasons of the existence of differences, to provide useful suggestions for making more reasonable preferential tax policies.