Research On The Influence Of Preferential Tax Policies On The Operating Performance Of China’s Photovoltaic Enterprises

The photovoltaic industry is playing an increasingly important role in the new round of energy reform due to its advantages such as safety,pollution-free,rich resources,and small environmental constraints.However,China’s photovoltaic enterprises still face many problems in the development process,such as the gap between China’s photovoltaic technology and advanced countries,excessive reliance on foreign markets leading to greater business risks and arrears of government subsidies.The photovoltaic industry has strong externality and requires large investment scales.Therefore,whether it is a national macro-level industrial policy support measure or an enterprise’s micro-level R＆D investment adjustment,it is necessary to promote the stable and healthy development of the photovoltaic enterprises.The Preferential tax policy improves the expected revenue and reduces the production cost of the company through the turnover tax incentives and income tax incentives,leading the continuous flow of social capital to photovoltaic companies,thereby reducing the risk of R＆D innovation in the early stage of photovoltaic enterprise development,alleviating the financing difficulties faced by photovoltaic enterprises in the mid-term development,and ultimately increasing Corporate profitability and leading industrial development.In view of this,this article will conduct a comprehensive study of the preferential tax policies for the photovoltaic enterprises,and select real financial data of some listed photovoltaic companies for empirical analysis,Study the true role of preferential tax policy on the development of photovoltaic industry by combining qualitative and quantitative methods,and combine the constraints of the development of the photovoltaic industry,to put forward suggestions to provide ideas for improving preferential tax policies on China’s photovoltaic industry and enhance the operational level of enterprises.this article firstly introduces the basic concepts of the tax incentives,the photovoltaic industry and the performance of enterprise,analyzes the theoretical basis for tax incentives to promote the development of the photovoltaic industry from three aspects: externality theory,sustainable development theory,and product life cycle theory,and specifically analyzes the impact mechanism of preferential tax policy on the operating performance of photovoltaic enterprises.Secondly,the current development situation and existing problems of China’s photovoltaic industry are studied.The tax incentives that China’s photovoltaic enterprises can enjoy are carefully sorted out from the two aspects of tax support policies specially aimed at photovoltaic enterprises and tax policies benefiting photovoltaic enterprises under the background of tax reduction.After that,according to the financial reports of listed companies released by CSMAR Database and www.cninfo.com.cn,Relevant data of major financial indicators such as return on total assets（ROA）,total assets,total liabilities and net fixed assets of 65 photovoltaic enterprises listed in Shanghai and Shenzhen from2010 to 2018 were collected as panel data for multiple regression analysis.The following conclusions are obtained through research:（1）Reducing the tax burden on the turnover tax of photovoltaic enterprises can improve the performance of photovoltaic enterprises.The heavy burden of turnover tax will increase the business burden of the company,increase the business risk,and then affect the business performance of the enterprise;（2）Reducing the tax burden of corporate income taxes of photovoltaic enterprises can improve the operating performance of photovoltaic enterprises.On the one hand,corporate income tax expense,as a deduction for calculating net profit,has a direct impact on the business performance of the company,and on the other hand,enterprises will adjust their investment and financing behaviors to improve business performance in the face of preferential tax policies;（3）There is a positive correlation between the scale of photovoltaic enterprises and their business performance.Asset-liability ratio and capital intensity of photovoltaic enterprises are negatively correlated with business performance,while enterprise age is positively correlated with enterprise performance.On the basis of the above analysis,it is concluded that China should increase the tax incentives for photovoltaic companies,in the meantime,appropriately increase preferential tax policies for photovoltaic enterprises,such as improving the valueadded tax incentives,shortening the depreciation period of photovoltaic products,appropriately relaxing the pre-tax deduction standard for research and development equipment,and increasing the preferential tax policies for upstream companies in the photovoltaic industry,etc.,to reduce the tax burden on photovoltaic companies and promote the healthy and long-term development of photovoltaic companies.In addition,while maintaining their stable operation,enterprises can adjust financial structure moderately,reduce the asset-liabilities ratio,expand the scale appropriately,so as to improve corporate performance and the ability to deal with risks.