Prospect Theory,Tax Burden,and Corporate Tax Compliance

Small and medium enterprises in our country,accounted for more than 90% of the total number of enterprises,paying an important role for promoting social and economic development,providing jobs and maintaining social stability,are important to our national economy.But they don't tax compliance.The tax non-compliance will not only bring huge tax revenue loss,endanger the national financial security,but also affect the role of national macro-control,disrupt the normal market economic order.As the listed companies of National SME Equities Exchange System to innovative,growing SME as the main body,therefore,this paper to the listed companies of National SME Equities Exchange System as a sample of the majority of SME to comply with the tax situation is important.Based on the prospect theory,this paper analyzes the relationship between the tax burden,fiscal incentives and the corporate tax compliance,and studies whether it can promote the tax compliance of the non-compliance listed companies and which tax categories preferential measures will more effectively improve the level of tax compliance.According to the results of the model,the following conclusions are drawn.Firstly,the total tax burden and turnover tax burden is positively related to tax compliance,and the tax burden rate,social insurance premium rate and tax compliance are not significant The tax rate of property tax only has a positive correlation with the improvement of enterprise tax compliance in the second industry.Secondly,tax refund can significantly improve the tax compliance of tertiary industry,government subsidies can significantly improve the second industry,corporate tax compliance,tax incentives and corporate tax compliance is not significantly related.Based on the above conclusions,in order to improve the enterprise tax compliance,this paper puts forward the following policy recommendations: First,the integration of information resources to strengthen tax-related information management;Second,gradually adjust the tax structure,increasing the proportion of direct tax;Third,clean up the norms of the charges,as soon as possible the introduction of social security tax;Fourth,focus on the choice of tax returns and government subsidies,clean up tax incentives;Fifth,expand the scope of inspection of small and medium enterprises,and increase penalties.