Research On The Incentive Effect Of Preferential Tax Policy On Corporate Charitable Donation Behaviors

Tax policy,as a kind of macro system,is an important policy means to adjust income distribution.The tax policy reform will affect the enterprise microeconomic behaviors.The preferential tax policy of charitable donation is a policy tool of the game between the government and enterprises,which plays an incentive role in corporate donation.It is a common practice in the world to provide tax incentives for enterprises that donate money.The continuous improvement of incentive tax policy has become an important content and direction of the issue of China's Charity Law and the revision of Law on Corporate Income Tax in recent years.In 2017,China's newly revised Law on Corporate Income Tax broke the limit on deducting charitable donations,allowing enterprises to deduct the portion of their donations that exceeds the limit of 12% of their total profits for the next three years before tax.The preferential policy reform has breaken the pre-tax deduction quota restriction of 12%,making the over-quota carry forward deduction seeding,reducing the enterprise donation tax cost,which is a big change of enterprise charitable giving preferential tax policies in China,and testing policy reform incentive effect on corporate charitable donation is of great significance.Based on the institutional background of China's corporate charitable donation incentive tax policy reform in 2017,this paper investigates the impact of the new policy on corporate charitable donation behaviors by using the data of A-share listed companies from 2015 to 2018.On the basis of regulating role of tax in income distribution,the guidance of tax incentive to charitable donations and the theory of utility maximization,the mechanism of tax incentive policy's influence on corporate charitable donation behaviors is explained from the perspectives of donation cost and donation tax revenue,donation tax benefit's income effect and price effect,etc.Through sorting out the preferential tax pol-icies of corporate charitable donation in the four developed countries of the United States,Britain and Japan,and comparing them with relevant preferential policies in China,it is found that there is single means of deduction and many restrictions in China,which provides a reference for further improving the preferential tax policies in China.The statistical analysis of corporate donations in China before and after the implementation of the new policy in 2017 is conducted from different dimensions.The results show that the implementation of the new carry-over deduction policy has a positive impact on corporate donations.Based on theoretical analysis and descriptive statistical results,with the help of large sample data,empirical models such as Logit and OLS are used to test the implementation effect of the new policy.Research confirms that the new tax incentives on donations have stimulated corporate giving intentions and raised corporate giving levels.The new policy has different incentive effects on enterprises with different performance.After the implementation of the new policy,the enthusiasm to donate of profit-making enterprises has increased significantly.The participation of annual loss-making enterprises has been improved,but the donation level has not.Further research also shows that the new tax deduction policy has a more significant incentive effect on non-state-owned enterprises than state-owned enterprises.There's no significant difference in promoting effect on enterprises among different product categories.The perfection of the tax system can enhance the market's guidance and regulation on corporate donations,give full play to the regulating role of tax,and promote the role of charitable donations in social equity.This study employs economic theory to expand the research on the driving factors of corporate philanthropy from the perspective of institutional constraints,which is conducive to improve the understanding of the influence mechanism of tax policies on corporate philanthropy.It has evaluated the implementation effect of the incentive tax policy reform in 2017 through a multi-dimensional way,providing effective support for the implementation of the new policy,which has certain enlightening value for the government to improve tax policy and for enterprises to make donation decisions.