On The Legal Norm Of Tax Incentives For Small And Medium-sized Enterprises In China

Tax incentives are an important means of state intervention in the economy.In the context of the rule of law,all means of state intervention in the economy must be legalized,which is precisely the connotation of economic law itself.However,for a long time,There is much confusion,misunderstanding and misinterpretation when designing and implementing tax incentives for micro and small businesses,especially the introduction of unclear authority,unclear content and confusing management.This has resulted in the positive effect of the policy not being obvious,and the actual tax burden borne by small and micro enterprises has not been significantly reduced.Therefore,in order to better play the role of the policy,laws are needed to regulate the formulation and implementation of preferential tax policies for MSMEs and further help the construction of the tax rule of law.This paper firstly introduces the overview of the tax preferential policies for MSMEs,defines the scope of "MSMEs" and summarizes the basic features of China’s tax preferential policies for MSMEs through policy combing;secondly,it evaluates the actual implementation effect of China’s tax preferential policies for MSMEs from four levels: tax saving effect,actual tax burden,financing methods and fund allocation,by combining financial and taxation data.Next,the actual implementation effects of China’s preferential tax policies for MSMEs are evaluated at four levels: tax saving effect,actual tax burden,financing methods and capital allocation,and it is found that the positive impact of tax preferential policies on MSMEs is very limited,and the problems in the formulation and implementation of China’s preferential tax policies for MSMEs are reviewed from the perspective of the basic principles of tax law.Once again,it clarifies the importance of regulating the tax incentives for micro and small enterprises in China by law,further proving that the solution to the problem needs to be accomplished through legal regulation.Finally,according to the three links of policy formulation,implementation and withdrawal,a rule of law approach to regulate the tax preferential policies for MSMEs in China is proposed,which can be regulated by implementing the principles of tax law,introducing proportional review,carrying out policy clean-up and establishing a tax preferential budget system.