A Research On The Impact Of Preferential Tax Policies On Corporate Charitable Donations

The continuous promotion of the socialist market economy system has led to the rapid growth of China’s economy and promoted the increasingly improvement of people’s quality of life.At the end of 2020,China has entered the era of a well-off society in an all-round way,which means that the people have gotten out of absolute poverty and are closer to the goal of common prosperity.But it does not mean that the gap which is between rich people and poor people has narrowed.With the outbreak of the new coronavirus pneumonia epidemic and the frequent occurrence of international trade frictions,China has been hindered in solving the problem of the gap between rich people and poor people.Since the People’s Republic of China was founded,China has been devoted to the goal of common prosperity,and has made unremitting efforts for this goal.In addition to adjusting the income distribution system and tax policies,the government also encourage the charitable donation behavior of social groups to fetch up for the lack of primary distribution and redistribution means,and for this purpose has formulated a series of charitable tax preferential policies to encourage the public to actively donate and further narrow the poverty gap.As the main body of charitable donations in China,enterprises are the key objects of the preferential tax incentives for donations,so the preferential tax policies for charitable donations for enterprises are more abundant,but the relevant policies are scattered in various systems,and don’t have formed a complete system,and the contradiction between the current charitable donation tax system and the donation behavior is becoming increasingly clearly,which to a certain extent affects the incentive effect of the corporate charity tax policy and restricts the development of China’s charity.Based on this background,this thesis focuses on the incentive effect of China’s preferential tax policies for corporate donations from both theoretical and empirical perspectives.The ideas of this thesis are as follows,to begin with,the relevant background and research significance of Charitable Donations in China are sorted out and explained,and the relevant research results of predecessors are sorted out and summarized,so as to obtain the research ideas and framework of this thesis;secondly,the relevant concepts involved in China’s corporate charitable donations are summarized.It then sorts out the economic theories involved in corporate public welfare donations,including the theory of externalities,pareto optimality and the theory of third distribution,and analyzes the motivation of enterprises to make charitable donations with social responsibility theory,profit maximization theory and altruism theory from the perspective of enterprises The consumer utility model is used to analyze the incentive effect of tax policy on corporate charitable donation behavior from the perspective of income effect and price effect,and it is concluded that the corporate income tax rate and pretax deduction ratio will affect the expenditure level of corporate charitable donations;On this basis,the existing problems in China’s existing preferential tax policies for corporate donations are analyzed,and it is found that there are problems in China’s charitable tax policies in terms of legislation,management and the adequacy of incentives;in order to better explain the correlation between tax policies and charitable donations,and better provide optimization suggestions for the problems existing in China’s charitable donation tax policies,this thesis also uses A 1480 listed companies were studied,and their panel data from 2015-2020 were intercepted to establish a fixed effect model for empirical analysis,and the empirical results showed that the corporate income tax rate was followed.It has a significant positive impact on the level of corporate charitable donation expenditure,corporate net profit will positively affect the level of charitable donation expenditure,and corporate fairness preference will positively affect the level of charitable donation expenditure,in addition,2017 The adjustment of the pretax deduction policy for annual enterprise income tax donation expenditure has a positive incentive effect on corporate charitable behavior,which shows that the preferential tax policy has an incentive effect on corporate charitable donation behavior;above all,combined with the results of theoretical analysis and empirical analysis and the analysis of the tax policy of China’s charitable donations,suggestions for optimizing China’s charitable donation tax policy are put forward,such as improving the charity tax legal system Improve the tax incentive management system for corporate charitable donations,etc.