Research On Tax Incentives Of PPP Model In China

In recent years,under the new normal economic development,the social public increasingly surge in demand for the infrastructure construction,application of the PPP model is not only beneficial to reduce the local government financial pressure,but also can guide the social capital to invest in new fields of social public products,improve the utilization efficiency of public resources,effectively promote structural reform of the supply side.In the face of covid-19 outbreak in December 2019,the PPP model can introduce market funds,enable the government and social capital to play their advantages,and enrich the supply of public services in epidemic areas,especially in Wuhan.From the practical experience of the development of PPP model in many foreign countries,in order to promote the PPP model,effective tax incentives are very important.However,by sorting out the current favorable tax policies of PPP model in China and based on the current tax system situation in China,the PPP favorable tax policies in China have many problems in both the overall policy design and the specific operation process of the project.Therefore,it is necessary to deeply study the PPP favorable tax policies in China.Firstly,this paper summarizes the relevant theories of PPP model in China,including the definition,classification,application fields,typical structure,operation process and tax-related situation of PPP model,and analyzes the necessity and feasibility of favorable tax policies to support the development of PPP model.Then,from the perspective of taxation,the paper sorts out the favorable tax policies of the current PPP model.The analysis of the impact of income tax incentives on the net income of PPP project is presented through specific cases.Then,it elaborates the existing problems of favorable tax policies of PPP model in China,including the limited coverage of tax incentives,the insufficient intensity of favorable tax policies,and the profitability differences of projects not considered in favorable tax policies.The lack of systematicness of tax incentives is mainly based on the overall design of the policy.Then,drawing lessons from the experience of South Korea,Indonesia and other countries,this paper puts forward suggestions on improving the tax incentives of our country's PPP model,and suggests that we should gradually expand the scope of tax incentives for the PPP model,increase the intensity of tax incentives,and formulate special operating guidelines for tax incentives.At the same time,the differences in the profitability of PPP projects should be taken into full account in the formulation of tax incentives.