Research On Legal Issues Of Tax Preferences For Corporate Charitable Donations

In recent years,China’s Gini index has been at a relatively high level for a long time.It indicates that domestic wealth distribution is unbalanced and polarized.Charitable donation,as the third means of wealth distribution recognized,can narrow the gap between the rich and the poor in China and alleviate social contradictions.According to empirical analysis at home and abroad,it is concluded that a country’s preferential tax policies for public welfare donations largely affect the amount of public welfare donations.If a reasonable tax preferential policy can be designed,it will play a greater role in promoting charity donations,thereby promoting the development of charity.In my country,compared with other donors,enterprises public donations account for a larger proportion.For enterprises,income tax is most affected by the preferential tax policies for charitable donations.Therefore,this paper mainly analyzes the preferential tax system of charitable donations from the perspective of enterprises income tax.In addition to the preface and conclusion,this paper is divided into four parts:The first part,an overview of tax incentives for corporate public donations.There are three types of tax incentives for enterprise income tax,which are tax base reduction,tax rate reduction and tax reduction.The paper defines tax deduction system of corporate public welfare is as a preferential tax policy.The paper discusses the public benefit tax preference of enterprises based on the tax equity theory,the tax ability theory and the state support theory.The second part,present situation and problems of tax preference for public donation of enterprises.China has established a preferential tax system for corporate public donations,but there are four deficiencies as follows: first,qualifications for pretax deductions for public welfare donations are stringent;second,incomplete non-monetary evaluation system;third,preferential tax policies have a low deduction ratio and a short carry-over period;next,the deduction of cross-region donation bills for enterprises is not clear.The third part,tax preferential system and evaluation of foreign corporate public donation.The paper takes the United States,Britain,Germany and Japan for examples,meanwhile expounds and evaluates the pre-tax deduction qualification,the supervision of charity and the pre-tax deduction system of these countries.The fourth part,suggestions on improving the preferential tax system of corporate public donation.The paper bases on the actual situation of our country and puts forward four suggestions: first,we should expand the number of charitable organizations with pre-tax deductions;we should improve the evaluation system for non-monetary donations;we should improve the legal system for pre-tax deductions;we should improve the cross-region donation system to facilitate donations for enterprises.