An Empirical Study On The Impact Of Corporate Income Tax Policy On Corporate Giving In China

Charity is a very important means of social redistribution,which plays a very substantial role in narrowing the gap between the rich and the poor,promoting social equity and justice,and easing social contradictions.On the basis of the different subjects of charity activities,the forms of charity activities are divided into the charity activities of natural persons,legal persons and other social organizations.According to the China charitable giving report,corporate giving is the most important part of total social donations.China’s enterprise income tax law gives relevant preferential measures to corporate giving,but with the development of the economy and the diversification of corporate giving,there are also some shortcomings.Completing the income tax policy to further promote corporate donation is our next step to think over.By sorting out the theories of corporate charitable donation and the related theories of income tax preferential policies for charitable giving,using both empirical research and comparative analysis,this paper focuses on part of relevant data of listed companies,and studies the impact of institutional environment and the actual burden rate of income tax on the willingness of corporates to donate through probit regression model.The institutional environment is negatively altered along with the willingness of enterprises to donate.By the double logarithmic linear regression model,the paper respectively analyzes the influence of the institutional environment and the actual income tax liability rate on the donation level of enterprises,concluding that the actual income tax liability rate is positively correlated with the level of corporate donation.The paper also chooses the United States,the United Kingdom,Germany and Japan to make an analysis of the preferential income tax policies for corporate giving comparatively.It is found that the donation deduction ratio of these countries is relatively high,and the charitable giving of corporates is more preferential.The forms of donation in these countries are diversified.There is not only monetary donation,but also a large proportion of non-monetary donation,and it has a mature and perfect asset value evaluation system.About the supporting measures,the supervision regulation system is really perfect,and the asset appraisal system provides good technical and institutional support for non-monetary donations.According to the empirical research results and the experience of other countries,the paper proposes: further expand the scope of the qualification assessment of the recipient institutions,expanding the channels of enterprise donation to provide convenience for corporate donation;increase the diversification of the forms of donations that allow pre-tax deduction,encouraging the donation of non-monetary assets,and maximizing the use efficiency of resources;improve the pre-tax deduction ratio and enhance the guidance of the government on the direction of corporate donations.We will improve supporting systems and measures,simplify procedures,improve departments’ communication and cooperation,and establish a complete asset valuation system.