The Research On The Policy Of Charitable Donation Tax Deductions About Chinese Companies

Charitable donations are kind to others based on the principle of voluntariness and unpaidness.They have many functions such as helping disadvantaged groups,adjusting residents' harmony,promoting social progress,and improving overall welfare.At present,China's total donation is large,and its total amount even exceeds that of many developed countries.However,the per capita donation level is low,accounting for a low proportion of GDP,and the gap between developed countries and regions is large.As one of the important means of regulating the economy,tax policy can and should play its leverage in charitable giving.First of all,the empirical results of this paper show that the increase in the tax deduction rate of charitable donations can stimulate the improvement of charitable donations.Secondly,this paper sorts out the status of domestic charitable donations,and lists the current tax-related incentive clauses for charities,and analyzes the shortcomings of tax incentives.Then,this paper takes the charitable donation expenditure of 54 listed companies as a sample,and intercepts the data from 2012 to 2017 for empirical analysis.The empirical results show that pre-tax deduction offers a stimulating effect on charitable expenditures,which can stimulate donors' charitable preferences and willingness,thereby increasing the amount of donations.The specific performance is that for every unit of tax burden increase,the charitable expenditure will increase by 0.05 percentage points.Finally,by summarizing the tax incentives of the United States,Japan and other countries and Hong Kong and Taiwan in China,combined with the status of donations in the country and the inadequacy of the incentive mechanism,the following suggestions are given: raising the legislative level,standardizing details,and improving the supporting system.And facilities;lower the threshold for qualifications,expand the scope of charitable organizations;levy inheritance taxes and gift taxes in a timely manner;simplify the procedures for charitable donations.