Research On Tax Preference Policy About For-Profit Non-Governmental Schools

From the beginning of the ancient non-governmental schools,it made positive contributions to education and economic and social development for our country.After the founding of the People’s Republic of China,non-governmental schools have experienced a short period of suspension.With the deepening of reform and opening-up,it began to recover and develop,meanwhile presented the basic characteristics of investment in running schools.However,the design of relevant policies and regulations still remained in the concept of donation to schools,which cannot meet the practical needs of non-governmental schools.Under this background,the legal category,property ownership,reasonable returns all become bottlenecks restricting the development of non-governmental schools.The implementation of classified management of for-profit and non-profit of non-governmental schools is welcomed.In November 7 th,2016,"the people’s Republic of China Non-Governmental Education Promotion Law" revised eighteenth to nineteenth,amended as:"the organized non-governmental schools can choose to set up nonprofit or for-profit non-governmental schools.However,it is not allowed to set up for-profit non-governmental schools for compulsory education." As a new type of school,there are still many problems need to be paid attention to and solved,one of them is preferential taxation.Under the current tax provisions,because more tax breaks are in favor of non-profit non-governmental schools,for-profit non-governmental schools will face financial decline and negative tax cost rising dilemma.Therefore,it is necessary to make further research on the rationality and feasibility of the preferential tax policy for profit non-governmental schools.This paper argues that the rationality of the tax preference of for-profit non-governmental schools can be supported by public finance and public policy theory.According to the theory of public finance,the externality and quasi-public goods attribute of for-profit non-governmental schools make it possible to obtain tax incentives.At the same time,according to the contribution made by for-profit non-governmental schools,the public finance will not reduce.In the context of public policy theory,the educational supply of for-profit non-governmental schools can achieve the public interest;this is the main goal to be achieved in the formulation of government public policy.In addition,we can further demonstrate the rationality of tax preference for for-profit non-governmental schools by clarifying the bias of tax incentives for for-profit non-governmental schools.The characteristics of China’s non-governmental schools show that the practical experience can be used for reference are less.However,before the introduction of preferential tax policies at the national level,Zhejiang Province,as a pilot of the classified management of non-governmental schools,proved the feasibility of the policy design of the preferential tax treatment of for-profit non-governmental schools.Based on the research,to further improve the design of preferential tax policies for the for-profit non-governmental schools should strengthen the formulation of tax related laws and regulations,strengthen the system of public finance,perfect the specific content of tax preference and correct understanding the basic characteristics of investment in running school.