Research On The Effect Of Income Tax Incentive Policy Of Charitable Donation

As a booster of economic development and social harmony and stability in China,philanthropy plays an important role in the overall poverty alleviation.In recent years,with the rapid economic development of our country,the unbalanced development problem caused by the further expansion of the gap between the rich and the poor has become the focus of our attention.After entering the new era,the main contradiction in our country has changed.Considering that the solution to this problem needs to be adjusted by income distribution,charity donation,as the third distribution of income distribution,plays a more important role in narrowing this gap than the previous two times Matching mode is more important.Therefore,the development of China's philanthropy is an important way to solve the existing contradictions.China's philanthropy did not start early.In recent years,the development of the Internet era,the rise of public welfare for all,led to the vigorous development of philanthropy.However,the proportion of China's philanthropy in GDP fluctuated between 0.15%and 0.19%,far lower than the level of 2.1%in the United States,which still exists with developed countries There is a big gap.The reasons for this situation are not only religious belief,the weak middle class,and the imperfect donation system,but also the imperfect tax policies to encourage charitable donation.With the promulgation of "charity law" in 2016,it has further released a major signal that the state vigorously develops public welfare charity and adjusts the income distribution pattern in the new era.As an important way to encourage enterprises and individuals to donate,preferential income tax policies are widely valued by all countries in the world.At present,the tax preferential system of charitable donation in China has not fully played its due role in promoting.It is urgent to strengthen theoretical and empirical exploration on how to build a more advantageous charitable donation enterprise by fully learning from foreign beneficial experience.Therefore,it is of far-reaching significance to study the effect of income tax incentive policy of charitable donation and explore the tax policy to promote the sustainable development of charity.The tax preference of charitable donation in China is mainly embodied in the income tax.Therefore,based on the study and summary of the relevant existing literature,this paper defines the concept of charitable donation,analyzes the internal and external factors that affect the charitable donation of enterprises and individuals,from the third distribution theory of income,psychological account theory,Pareto optimal theory Starting from the theory,this paper explains the effect of tax incentive on charitable donation,and concludes that tax policy leads to the change of donation price from two aspects of corporate income tax rate and pre tax deduction rate,laying a solid theoretical foundation for the later research;secondly,it sorts out the preferential policies of corporate income tax and personal income tax on charitable donation,and analyzes their current generation Second,we collected 263 listed companies' panel data in 2016-2018 as research samples,selected the core indicators of price effect and income effect,corporate income tax rate and net profit as variables,and used multiple regression model to verify the positive correlation between the two and charity donation expenditure,indicating that income tax policy can affect corporate donation According to the theory of psychological account and the variable of advertisement expenditure,the positive correlation between charity donation and advertisement expenditure is confirmed.That is to say,there is no substitute relationship between charity donation and advertisement expenditure.Enterprises will not use these funds for charity donation because of reducing the investment of advertisement and propaganda.On the contrary,one pays attention to advertisement and propaganda The effect of enterprises,will also pay attention to the social reputation of charitable donations,will increase the expenditure for charitable donations.Then,we empirically verify the correlation and influence degree between multiple variables and corporate philanthropic donation expenditure.There is no significant relationship between asset liability ratio and corporate philanthropic donation expenditure.There is a positive correlation between corporate net profit growth rate,scale size and donation expenditure.It confirms the conjecture of scholars at home and abroad that enterprises with large scale and development potential are not only used for short-term investment,but also for short-term investment More attention will be paid to corporate philanthropy.From the empirical part,we also know that the nature of enterprises has a significant correlation with the charitable donation expenditure,and private enterprises and other enterprises are more affected by tax incentives.The industry attributes of enterprises have a significant correlation with charity donation expenditure,and the incentive effect of tax policies on commercial enterprises and financial enterprises is more obvious.It is confirmed that the industry with more contact with consumers has a greater impact on the tax incentives of charitable donations.Finally,based on the empirical conclusions and the existing problems of the current charitable donation income tax preferential policies analyzed above,some suggestions are put forward to further improve the pre tax deduction system of income tax,expand the scope of tax preference in specific donation fields,differentiate the tax preference in different industries,increase the tax preference for advertising expenditure of enterprises,timely levy the inheritance tax,strengthen the construction of charity organizations,set up unified pre tax deduction voucher for donation,and create a good tax environment to encourage charitable donation.