PPP Model Tax Incentive Policy Research

In recent years,under the background of strict control of local debt and reform of the supply side,the PPP model is based on the essence of “introducing social capital into public infrastructure and public services to promote more efficient and quality public goods and services”.The favor of the central and local governments has successively introduced a series of policies and measures to guide the social capital into the public facilities construction and public service provision fields,and the PPP model has developed rapidly.Because of its own characteristics,the PPP model needs a good system and policy environment to promote its development.Among them,the tax policy has an important influence on the development of the PPP model.Through practical experience and theoretical research of domestic and foreign PPP models,it is found that reasonable and effective tax incentives can effectively stimulate the participation of social capital in the PPP model.Tax policy support is necessary and feasible for the PPP model,and preferential tax policies are to promote PPP.The important means for further development of the model.However,from the perspective of China's current tax incentives,on the one hand,the PPP-related tax incentives have many shortcomings in the entire life cycle of financing,construction,operations,profit distribution,and asset transfer.On the other hand,the current PPP tax incentive policy still lacks a unified PPP tax preferential policy system,with small tax incentives,narrow taxation coverage,and failure to consider project profitability differences.In view of the tax preferential policy problems encountered in China's PPP model,this paper suggests that we must first establish a unified taxation policy system for the PPP model;at the same time,we should appropriately increase the PPP related tax incentives and rationally expand the PPP related tax benefits coverage;When making tax policy,the difference in profitability of PPP projects should be fully taken into account.Differentiated preferential tax treatment should be designed according to the profitability of the project;the scope of benefits of PPP projects should be considered to make tax relief more reasonable.In addition,this article also recommends that relevant departments formulate and regularly update the PPP tax management guidelines,answer questions about social capital participation in tax-related issues arising from the PPP model,so that they can better understand and use tax policies,and attract more societies.Capital participation in the PPP model further promotes the development of the PPP model.