Research On Preferential Corporate Income Tax Policies To Encourage Charitable Donations By Enterprises In China

In 2020,China achieved a gradual goal of poverty mitigation,and the new goal of the next stage is the general prosperity.The third distribution is very important in China’s goal of achieving common prosperity,and charitable donation is a tool of the third distribution.Therefore,charitable donation is also very important for common prosperity.However,at present,China’s policies and regulations on charitable donation are not perfect,so it has not fully promoted the donation behavior of enterprises..In view of this situation,Chinese scholars have carried out research on charitable donation.From the results of the source of charitable donations in the past 10 years,it can be found that corporate donation expenditure accounts for a relatively large proportion of the total amount of charitable donations every year,and at present,in addition to building a good donation environment,taxation is also a tool to guide enterprises to make charitable donations.Among them,the most easily perceived tax for enterprises is corporate income taxTherefore,this paper studies the preferential policies of corporate income tax related to charitable donation.The main body of donation in this paper is enterprises.Although they are all external donations,the donation motives of different enterprises are different,first of all,this article analyzes the motivation for charitable donations from the enterprise,enterprise charity motivation can be divided into two kinds,one kind is selfish motives,another kind is altruistic motives,analysis enterprise income tax preferential policies for enterprises at the same time the mechanism of the charitable donations.Then from the sources of donation,donation methods and areas of donation introduced the present status of charitable giving,found that charity donation amount increased year by year in China,the development is in good condition,and then to our current corporate income tax policy of charitable giving,selected from 2010 to 2019,the relevant data of 873 a-share listed companies for empirical research,The fixed effect model is constructed to analyze the relationship between the corporate income tax rate,net profit and change of income tax policy and the amount of benevolent contribute expenditure under different gain levels of different company,it is found that the reform of charitable donation related tax preferential policies has different incentive effects on charitable donation behavior of enterprises with different property rights.The empirical analysis of the current situation of charitable donation in China shows that the problems existing in China’s income tax policy include: the narrow scope of charities enjoying tax,improper tax preferential policies and so on.The current preferential income tax policies do not have enough incentive effect on pre tax charitable donations.For the above questions on expanding our scope of charity to enjoy tax incentives,optimization of pre-tax deduction of relevant policies in order to donation behavior incentive effect to the enterprise,encourage enterprises to non-monetary donations and integration of charitable giving related tax policy advice,based on the practical situation of enterprise donation in 2021,suggestions are given on large donation behavior of enterprises with poor operation,and enterprises are encouraged to make moderate donation under the circumstance of sustainable development.