The Research Of Small Micro Business Tax Privilege

As the development of the economy,small and micro business(SMB)gradually becomes the vital component of the national economic system.It plays an indispensable role in promoting the economic development,employment and industrial adjustment.SMBs consist of 60 percent of GDP in China,contribute to approximately 50 percent tax income and provide more than 80 percent of job placement in the towns.However,recently the development of SMB faces severe challenges.High tax instead of financing difficulty has become the primary factor hindering the development of SMBs.Since the economic crisis in 2008,the government introduced series of tax privilege policy,but the outcomes remain insignificant.In this paper,starting from the existing researches,we introduced the tax conditions in SMBs under the current tax privilege policy,followed by the analysis of a case in a specific city between the year 2009 to 2012,aiming to precisely reflect the real status of the burden in SMBs.We search for the defect in the current tax privilege by analyzing the differences of the added-value tax and income tax between the SMBs and large enterprises.Researches in this paper found that under the background of“structural tax reduction”,tax bearing in the large enterprises has decreased,but not significantly in SMBs.Problems in the SMBs include limited coverage of tax policy,limited strength in tax reduction as well as the conflict between the tasks and policies during execution.From this,in this paper,we proposed some advices from the basic premise of policy,tax incentives specific content,optimize tax collection.