Research On Tax Incentive Mechanism For The Development Of Non-profit Organizations In China

Since China planned to establish the socialist market economic system in 1992,the national economy has developed at a high speed.While “taking economic construction as the center”,China has neglected the development of the society,which has caused serious environmental pollution,increased income gap among residents,and lagged behind the old-age cause.Non-profit organizations have played important role in solving these problems because they are committed to charity and public welfare,so measures must be taken by government to support their growth.As an economic adjustment measure,tax policy is widely used to regulate macroeconomics,and it is also used to regulate the economic behavior of micro-subjects such as non-profit organizations.This article is intended to promote the development of non-profit organizations by improving the tax incentive mechanism for the development of non-profit organizations in China.The research on the tax incentive mechanism for the development of non-profit organizations is mainly carried out in two directions: one is to study the tax incentive policies of non-profit organizations;the other is to study the tax incentive policies of profit-making enterprises and individuals that provide funding sources for the development of non-profit organizations.At the same time,from the perspective of corporate public welfare donation,this paper conducts an empirical analysis of the tax incentives for the development of non-profit organizations in China.This paper first expounds the theory of why non-profit organizations can enjoy tax incentives,and uses the example and equilibrium analysis to demonstrate the realization process of public welfare donation pre-tax deduction policy to promote corporate donation.Then it reveals the status quo of the development and management of non-profit organizations in China.From the perspective of non-profit organizations,it sorts out the tax incentive policies related to non-profit organizations in China and analyzes their shortcomings.Then,taking 311 listed companies in Shanghai and Shenzhen A shares as samples,from the perspective of corporate public welfare donations,the paper analyzes the tax incentives for the development of non-profit organizations in China.The main results of the empirical analysis are: higher donation prices inhibit corporate donation expenses.Higher net profit promotes corporate donation expenses.Finally,based on the analysis of the previous problems,and on the basis of the empirical research results,it proposes the suggestions for improving the tax incentive mechanism for the development of non-profit organizations in China,which includes three aspects: improving the tax incentives of non-profit organizations;improving tax incentives for corporate and individual public welfare donations;improving other measures for tax incentives for non-profit organizations;improving supporting measures for tax incentives for non-profit organizations.Taking the data of 311 listed companies in Shanghai and Shenzhen A shares as the sample to make empirical analysis of the tax incentives for the development of non-profit organizations in China from the perspective of corporate public welfare donations;proposing non-profit organizations to purchase cars for public welfare activities related to their purposes Exemption from consumption tax,vehicle purchase tax and vehicle and vessel tax,are the innovation points of this paper.