Research On The Influence Of CIT On Corporate Donation Behavior In China

Since the reform and opening up,China’s economy and society has made remarkable achievements in just 40 years.Even if Chinese income has increase continuously,the income gap within residents is expanding a lot.People are paying much more attention to the problem of income distribution.In October 2019,at the Fourth Plenary Session of the 19 th CPC Central Committee,the CPC Central Committee clearly proposed that our country should attach great importance to the development of charity and public welfare undertakings.As an important part of China’s tax distribution system,Philanthropy,a significant part of China’s tax distribution system,is conducive to social equity to alleviate the growing gap in income distribution.In order to guide and encourage the positive and healthy development of philanthropy in China,this paper studies the impact of corporate income tax on corporate donation behavior from the perspective of tax,and puts forward relevant tax policy suggestions for promoting corporate donation behavior in China.This paper can be divided into five chapters,including four parts,including four parts: current situation about donation within our country,theoretical analysis,empirical research and policy recommendations.The first chapter is the introduction,which mainly describes the background,significance and related literature review of this study.This chapter roughly combs the existing relevant research in our country,and finds that there are blanks in the research of the Forward Deduction Policy which has been carried out,the regional differences of corporate income tax has influenced donation and other issues,which is also the innovation of this paper.The second chapter analyzes and studies the current situation of charitable donation and the corresponding corporate income tax policies.It is found that China’s philanthropy is booming,but also exists further growing space.This chapter have also summed up the four characteristics of the development of China’s philanthropy.In addition,with sorting out the relevant corporate income tax policies,some problems can be found in the our country’s current relevant policies,which also need to be improved in the future.The third chapter is the theoretical basis of this paper,mainly from the perspective of profit maximization and utility maximization,through mathematical derivation and proof,it analyze the theoretical basis and mechanism of the impact of corporate income tax on corporate donation.It is found that under the policy of donation limit deduction,both the corporate income tax rate T and the pre tax deduction proportion δ will have an impact on corporate donation behavior,which provides a solid theoretical basis for the following empirical analysis.The fourth chapter is the empirical analysis.This chapter underlines studies the influence of corporate income tax rate,pre tax deduction policy,advertising expenditure on donation behavior and whether the influence has regional differences by establishing a double logarithm linear model using relevant data.The research finds that: the corporate income tax effect on corporate donation in China is positive,and the incentive effect of pre Tax Deduction Policy on corporate donation is significant.The investment of enterprises in advertising will have an influence on donations,and the tax rate effect of corporate income tax has regional differences.The fifth chapter is talking about the tax policy suggestions.In order to promote the development of philanthropy in China,this paper puts forward the corresponding policy recommendations in three aspects: "optimizing the pre Tax Deduction Policy of corporate income tax","optimizing the relevant institutional environment" and "optimizing the standards of public welfare organizations with deduction qualifications".