An Empirical Study On The Impact Of Tax Reduction On The Business Performance Of Small And Medium-sized Enterprises

The number of small and medium-sized enterprises accounts for about 99% of the total number of enterprises in the country,and plays an irreplaceable role in promoting economic growth and stabilizing employment.In view of the difficulties faced by smes in financing and their weak ability to resist risks,China has formulated a series of tax reduction policies to support the development of smes.The tax reduction policies obviously reduce the tax burden of small and medium-sized enterprises and enhance their competitiveness,but at the same time,there are also problems such as lack of systematicness and stability,imperfect top-level design,inadequate implementation and immature implementation environment,which affect the macro-guiding value of the policy to a certain extent.Reducing the tax burden of small and medium-sized enterprises is not the ultimate goal of the implementation of tax reduction policies.The key to the implementation of tax reduction policies is whether to effectively promote the improvement of the business performance of small and medium-sized enterprises and through what mechanisms and ways to promote the improvement of business performance of smes.Therefore,this thesis studies the impact of tax reduction policies on the business performance of small and medium-sized enterprises and explores ways to maximize the effect of tax reduction policies,so as to give strong vitality into the high-quality development of smes.In order to explore the impact of tax reduction policies on the business performance of small and medium-sized enterprises,this paper sorted out the relevant research on tax reduction policies,the definition and measurement of business performance and the relationship between tax reduction and business performance of enterprises,and made literature review,and then introduced the relevant theories of tax reduction,the definition and measurement of business performance of enterprises.This paper expounds the direct impact of tax reduction policies on the business performance of smes,the intermediary effect of enterprise R&D investment and the moderating effect of financing constraints,and analyzes the realization path of tax reduction policies on the business performance of enterprises.Then the paper analyzes the current situation of smes,and summarizes the tax reduction policies which our country implements in recent years for smes,and discusses some problems about tax reduction policies for smes.In the empirical analysis part,this paper selects 10 financial indicators and 2 non-financial indicators to construct business performance indicators of small and medium-sized enterprises by using the data of smes from 2013 to 2020 and the factor analysis method.The bidirectional fixed-effect model is constructed to test the relationship between tax reduction and the business performance of smes.The empirical analysis is conducted from the perspective of the overall and sub-industries respectively.The R&D investment is used as the intermediary variable to test the intermediary effect,and the financing constraint is used as the moderating variable to test the moderating effect.The empirical results show that tax reduction can improve the business performance of smes,and the intermediary effect indicates that our tax reduction policies can improve the business performance of smes by increasing R&D investment.At the same time,in the process of tax reduction affecting the business performance of small and medium-sized enterprises,financing constraints play a moderating role.It is further found that in the samples of non-state-owned enterprises,small-scale enterprises and enterprises in western regions,the tax reduction policies has a greater promoting effect on the business performance of smes.In the part of learning from foreign experience,this paper summarizes and analyzes international experience from five aspects of reducing tax to deal with the pressure of small and medium-sized enterprises’ tax expenditure,improving the efficiency of tax refund,optimizing tax service methods,deepening the combination of tax reduction policies and innovation links,strengthening the performance management of tax preferential policies,promoting the development of green society,and creating low-carbon economy to promote tax system,so as to further improve the tax reduction policies and promote the improvement of business performance of small and medium-sized enterprises.Finally,on the basis of summarizing the research conclusions,this paper puts forward some fiscal and tax suggestions to further promote the business performance of small and medium-sized enterprises.