The Impact Of Tax Incentives On Investment By Smes

As a major force in national economic and social development,small and medium-sized enterprises can create more jobs,improve people's livelihood and promote innovation.At the same time,with the development of China's economy,investment is becoming increasingly important to China's economic development.Preferential tax policies can be used as a means of macro-control to promote the investment and development of smes,it plays an important role.However,the current preferential tax policies in China are still inclusive,which pay insufficient attention to the differences between industries and fail to realize precise preferential policies,which may lead to the failure of giving full play to the effect of preferential policies in terms of investment incentives and other aspects.Therefore,according to the situation of our country small and medium-sized enterprises investment,and then analysis the preferential tax policy incentives manufacturing and services for small and medium-sized enterprise investment effect,on the basis of literature review,with the theory of public management,and market failure,mechanism analysis of tax incentives affect corporate investment theory,and in manufacturing and services,for example,from the favorable priorities,such as the tax burden for comparative analysis.Then,the models were constructed respectively,and the annual report data of China's smes board and GEM listed companies from 2012 to 2018 were used.Finally,the empirical analysis was carried out to draw a conclusion on how tax incentive policies affect the investment of Smes in China's manufacturing and service industries.The results show that the preferential tax policies can significantly promote smes in both manufacturing and service industries.However,compared with the degree of influence of the investment of smes in the two industries,the effect of tax incentives on the investment of smes in manufacturing industry is more significant than that in service industry.Based on the above research results,the following Suggestions are proposed in terms of policies: First,strictly divide the types,scales,levels and development stages of small and medium-sized enterprises,and implement multiple tax rates and targeted preferential tax policies according to the divided scope to meet the development needs of different types of enterprises.Second,in terms of promoting the investment of small and medium-sized enterprises in the manufacturing industry,the depreciation amount of fixed assets should be increased and the scope of tax deductions should be expanded for the newly acquired machinery and equipment and tax records of enterprises,so as to encourage enterprises to update and transform their technical equipment and solve the problem of difficult transformation and upgrading of production costs in the manufacturing industry.Third,to promote the development of small and medium-sized enterprises in emerging industries such as the service industry,set up special funds for scientific research funds,regularly issue scientific research subsidies,allow scientific research achievements to be converted into investment subsidies,increase tax policies related to human capital,reduce pressure on enterprises in human capital investment,and stimulate enterprises' enthusiasm for investment.