Study On The Influence Of Enterprise Income Tax Incentive Policy On Foreign Direct Investment In Hainan Free Trade Port

Foreign direct investment(Foreign Direct Investment,FDI)refers to an international form of investment in which foreign enterprises,economic organizations or individuals invest in production and business activities in accordance with the relevant laws and regulations of China.Foreign direct investment can effectively solve the problems of capital shortage and technical bottleneck in China’s economic development,which is conducive to promoting the optimization and upgrading of China’s industrial structure and driving the effective economic growth.On June1,2020,the CPC Central Committee and The State Council promulgated the Overall Plan for the Construction of Hainan Free Trade Port(hereinafter referred to as the Overall Plan),marking a solid step forward in comprehensively deepening reform and opening up in the new era.Building a free trade port in Hainan is an important strategic mission entrusted to Hainan by the CPC Central Committee of China,and is the fundamental requirement for promoting high-level opening-up and establishing a new system for an open economy.The opening-up at a high level must adhere to the "bring in" approach and take the most effective measures to effectively attract foreign direct investment.As a means of national organization fiscal revenue and macroeconomic regulation,taxation plays a very important role in attracting foreign direct investment.In particular,the enterprise income tax runs through the whole process of enterprise production and operation,and the level of its tax burden is an important related factor that directly affects the development of foreign direct investment.However,the state can also reverse guide the flow direction of foreign direct investment by adjusting the enterprise income tax policy,so as to promote the coordinated development of economy.Under the framework of the Overall Plan,the Ministry of Finance and the State Administration of Taxation have formulated a series of enterprise income tax incentive policies,which have produced a certain effect in guiding the development of foreign direct investment in Hainan,but there are also some problems.Based on this,this paper studies the impact of enterprise income tax incentive policy of Hainan Free Trade Port on foreign direct investment,analyzes the problems in the policy itself and implementation,and puts forward corresponding countermeasures and suggestions,so as to provide reference for the adjustment of relevant government policies.This paper mainly analyzes from the following aspects: one is the introduction.This paper introduces the research background,research significance and literature review of this paper.The second is the theoretical analysis of the influence mechanism of enterprise income tax on foreign direct investment.The representative theory of international direct investment is systematically summarized,and the influence mechanism of enterprise income tax incentive policy on foreign direct investment is expounded from four aspects: the effect of resource factor allocation effect,the effect of industrial structure optimization,innovation-driven development effect and regional coordinated development effect.Third,the current situation analysis of the enterprise income tax incentive policy and foreign direct investment of Hainan Free Trade Port.The enterprise income tax incentive policies of Hainan Free Trade Port are sorted out,and compared with the enterprise income tax policies of other domestic special regions and international advanced free trade ports,the characteristics and competitive advantages of the enterprise income tax incentive policies of Hainan Free trade Port are analyzed.Then,the development status of foreign direct investment in Hainan Free Trade Port is analyzed in terms of quantity and structure.By comparing with the historical data,it is judged that the enterprise income tax incentive policy of Hainan Free Trade Port has a positive impact on foreign direct investment.Fourth,an empirical study on the impact of enterprise income tax incentive policy of Hainan Free Trade Port on foreign direct investment.Using the virtual variable regression model and the traditional double difference method,the enterprise income tax incentive policy has a positive impact on the quantity and structure of foreign direct investment.Fifth,problem analysis and policy suggestions.Through field research and the distribution of questionnaires to enterprises,the analysis shows that the enterprise income tax incentive policy in the process of attracting foreign direct investment,the tax policy needs to be improved,and the investment environment needs to be optimized.Finally,based on the relevant experience at home and abroad,some suggestions are put forward to continue to optimize and improve the relevant enterprise income tax incentive policies,strengthen tax services and optimize the environment for foreign investment.