A Study Of The Tax Preferential Policies For The Chinese Micro And Small-sized Enterprises

As a result of globalization,the economy all over the world has been changing significantly.In the meantime,micro and small-sized enterprises(MSEs)grow sharply and provide a large number of job opportunities.Furthermore,MSEs activate the emerging market economy,speed up the structure adjustment of economy,and play an important role in Chinese economic development.The Chinese Premier Li Keqiang said that large enterprises guide the direction of Chinese economy development,yet the Chinese economy still highly relies on MSEs.However,there are some disadvantages about MSEs: defective financial system,small size,less capacity against risk,imbalance industrial structure,backward technological level,etc.All these problems slow down the development of MSEs,consequently,affecting the development of Chinese economy.In past years,some tax preferential policies have been established to help the establishment and development of MSEs.These tax preferential policies have been exploring and improving during their implements,and ensure the healthy development of MSEs.Yet,how to overcome the problems through the help of tax policies is still crucial for the optimization and upgrade of MSEs.In this study,we first explained the definition of MSEs and several theories on tax revenue comprehensively.The present development status of Chinese MSEs was carefully analyzed.The Chinese MSEs play important role in labor employment,promotion of social progress,enhancement of market vitality,encouragement of innovation and balance regional development.Meanwhile,there are also many problems of MSEs,including excess establishment,high bankruptcy rate,short survival period and low output.The causes and possible solutions for these problems were explored.Next,we focus on the tax policies,discussing the assistant for development of MSEs by the tax preferential policies in different countries.The income tax and value-added tax policies in China were mainly introduced,and the limitations of these policies were highlighted.We also present the implementation of tax preferential policies on a MSE in Nanchang city and analyze the impact.Based on the analysis results,we propose some suggestions and implementations for the Chinese tax preferential policies optimization.These suggestions include: build up tax preferential systems gradually with indirect tax preference as major and direct tax preference as minor,increase tax preference on MSEs,apply different tax preferentialpolicies on MSEs based on the status of MSEs,improve tax preferential policies for the innovation of MSEs,improve legislative levels of tax preferential policies on MSEs,devote major efforts on development of financial institutes for MSEs,establish classified management system for MSEs and improve the quality of tax service.