Resrearch On The Preferential Income Tax Policies Of Promoting The Development Of Charitable Causes In China

As asignificant means of the third distribution,charitable donation is of great importance to narrow the wealthgap and maintain social stability.In recent years,charitable cause of China has been booming and the total amount of social donations has been increasing year by year,but there still exists a great gap between China and countries with mature charitable causes.One of the major causes that result in the gap lies on the imperfection of tax incentives system concerning charitable donation.In China,the preferential income tax policies exert the most prominent influences on charitable donations.Therefore,it is of vital significance to promote the development of charitable causes to conduct studies on the preferential income tax policies concerning charitable donation and to put forward proposals to perfect the policies.This thesis,whose research object is 773 A-share listed companies of Shanghai Stock Exchange,tends to analyze the incentive effect of China's preferential income tax policies on charitable donations of corporations by establishing double log-linear regression model.The research results prove that the incentive effect does exist but still needs to be enhanced.For the purpose of further perfecting the preferential income tax policies related to development of charitable causes and promoting the incentive effect of preferential income tax policies on charitable donations,this thesis reviews plenty of preferential income tax policies concerning development of charitable causes and finds that China'spre-tax deduction system of income tax on charitable donations has many problems as follows: the proportion of pre-tax deduction is relatively low;the excess part of individual donations that is not deductible this year is not allowed to be carried over for use in the following tax years;the process of donation deductions is cumbersome;and donations of non-monetary assets are difficult to deduct.Furthermore,problems like the imperfection of tax legislation system concerning charity,the unfulfillment of charitable organization's management and the lack of charitable culture restrict the development of charitable causes in China.Under such a background,by comparing and referring to the preferential income tax policies of western countries,this paper,on the basis of China's actual situation,puts forward some suggestions,such as further optimizing the pre-tax deduction system of income tax on charitable donations,improving the tax legislation system concerning charity and strengthening the management of charitable organizations,as well as cultivating modern charity philosophy step by step.