Study On The Impact Of Tax Incentives On Corporate Charitable Giving

In recent years,our government has paid more attention to charitable giving,having proposed to play the role of the third distribution and vigorously develop charity in many important meetings,such as the Fourth Plenary Session of the 19 th Central Committee,the Fifth Plenary Session of the 19 th Central Committee and the 10 th Meeting of the Central Finance and Economics Commission.Taxation has an important regulatory function for economic development,social stability and prosperity,and public governance,and is no exception in the field of charitable giving.This paper examines the impact of two special tax incentives introduced in 2019 for pro-poor donations on corporate philanthropic donations by selecting data on pro-poor donations of listed companies from 2017-2020 and applying a two-way fixed effects model.Its practical application is valuable in demonstrating whether increased tax incentives will promote corporate giving,whether the government can achieve a tilt of charitable resources to a particular area by implementing differential tax incentives,and in examining the incentives of VAT as a tax.Through empirical research,this paper finds that the two special tax incentives introduced in 2019 for pro-poor donations promote both the scale of pro-poor donations and the form of in-kind donations by enterprises.Further study found that its impact on state-owned enterprises and manufacturing enterprises is greater.Finally,corresponding countermeasure suggestions are proposed based on the research findings,which have certain implications for improving the taxation system of public welfare donations in China.