Research Of Income Tax Preferential Policy For Small And Micro Enterprises In China

Small and micro enterprises have a pivotal position in the process of economic development in China,therefore,to promote the development of small micro-enterprises has great strategic significance.Keqiang Li once pointed out that in order to achieve long-term sustainable development in,we need both large enterprises’ lead and numerous small and micro enterprises’ sufficient power.On the other hand,compared with large and medium-sized enterprises,small and micro enterprises have their congenital disadvantages,such as small scale,weak risk tolerance,and poor management system,making it extremely vulnerable to economic fluctuations.Therefore,countries often fully consider their own actual factors,with the help of the introduction of the tax preferential policies,to achieve the goal of alleviating the development burden of small and micro enterprises,so does China.But it is undeniable that compared with other developed countries,China’s work in this area has large deficiencies and need to be further improved.The Essay first studies the definition of Small and Micro Enterprises and its relevant elementary taxation theories by clarifying the scope of Small and Micro Enterprises and further combing through the related taxation principles and theoretical references.An analysis on the influence mechanism is further conducted accordingly and constitute a strong theoretical support on future research.Subsequently,a thorough analysis based on the summary of PRC tax preferential policies on Small and Micro Enterprise in recent years with the example of D City of S Province,using D city’s related taxation data,is conducted on the fundamental impact of tax preferential policies on Small and Micro Enterprise.On the analysis above,potential pragmatic problems and the rationale behind the problems along the making and the settling of the related tax preferential policies are further explored.Finally,absorbing advanced nations’ experience and integrating into PRC realistic circumstances,the essay proposes several suggestions targeting at improving the effective application of Small and Micro Enterprise’s Corporate Income Tax preferential policies so as to serve as constructive reference for the future improvement.