Research On Tax Policy To Promote Corporate Charitable Donation

According to the 2035 vision,during the 14 th Five-Year Plan period,we will further improve the structure of income distribution,standardize the order of income distribution,and make substantial progress in promoting common prosperity for all the people.In this context,charitable donation,as the third allocation of social resources,can effectively make up for the shortage of market allocation and government allocation,promote the fair and reasonable allocation of social resources,and narrow the gap between the rich and the poor.Therefore,focusing on enterprises,an important subject of charitable donation,and studying how to encourage enterprises to invest more in charitable causes through tax policies are of great significance to improve people’s well-being,maintain social stability and achieve common prosperity.Based on the above background,this paper first describes the concepts related to charitable donation and the factors affecting corporate charitable donation.Based on the government and market failure theory and the third distribution theory,it uses the utility maximization model and the consumer choice model to analyze the mechanism of tax incentives for corporate charitable donation.Then,the present situation of corporate charitable donation and tax policy is studied emphatically.In the empirical part,this paper uses 20192 data from 3980 A-share listed companies in CSMAR database from 2007 to 2021,takes corporate charitable donation expenditure as the explained variable,and tax policy changes as the core explanatory variable.After F test and Hausman test,fixed effect model is selected for regression analysis.The results show that the adjustment of the tax preference policy to allow the carry-forward of pre-tax deductions effectively improves the enthusiasm of enterprises for charitable donation,especially those with strong profitability.Then,the accuracy and reliability of the empirical results were verified by two robustness testing methods,substitution variable and quantile regression.Further through the analysis of the heterogeneity of enterprise location and enterprise property right nature,it is found that the incentive effect of tax preference policy changes on enterprises in different areas of economic development and enterprises with different property rights is different.The incentive effect of tax policy adjustment on charitable donation of enterprises in economically developed areas and non-state-owned enterprises is stronger.Based on the above conclusions,this paper puts forward some policy suggestions to improve the tax policy system for charitable donation,including strengthening the pre-tax deduction for charitable donation,formulating corresponding preferential tax policies for different types of enterprises,perfecting the preferential tax policy for non-monetary donations,simplifying the deduction process,fostering charitable culture,and reshaping the value orientation of the tax policy for charitable donation.