How to write a more in-depth paper on preferential tax policies to support corporate innovation

Reference:

Abstract: my country’s tax policy has played an important role in supporting scientific and technological innovation and has effectively promoted the construction of an innovative country. However, there are also some shortcomings. Combined with the " Taking the opportunity of the introduction of the "Overall Plan for Deepening the Reform of the Fiscal and Taxation System", we should seize the overall goals of fiscal and taxation reform and the science and technology development strategy, and improve the operability of tax policies by promoting "universal" incentive policies, using structural tax reductions, summarizing pilot experience in demonstration zones, and improving the operability of tax policies. , encourage long-term investment in science and technology, strengthen the commercialization of innovation results, establish a tax incentive mechanism for human capital, improve related work and coordination mechanisms, and improve the incentive mechanism for scientific and technological innovation and entrepreneurship, with a view to better developing enterprise-centered, market-oriented, industry-based industries. A scientific and technological innovation system that combines learning and research.

Keywords: Technological Innovation Tax Policy Incentive Mechanism

Technological innovation is the main driving force, key factor and "primary productive force" to promote the economic development of countries around the world, and the national science and technology innovation policy It plays a vital guiding role in improving social productivity and comprehensive national strength, building a national innovation system, and accelerating the innovation process of enterprises. The report of the 18th National Congress of the Communist Party of China clearly proposed to promote the simultaneous development of new industrialization, informatization, urbanization and agricultural modernization. This requires us to focus on innovation-driven development, fully release the potential of scientific and technological innovation to stimulate economic growth, and promote the goal of building a moderately prosperous society in all respects in 2020 and in The realization of the strategic task of creating an "upgraded version" of the economy as it enters a new stage of the "new normal" economy. In recent years, my country's tax policy has played an important role in supporting scientific and technological innovation, achieved results, and effectively promoted the construction of an innovative country. However, there are also some shortcomings. It is necessary to deepen the scientific and technological investment system on the basis of clarifying the relationship between the government and the market. Reform, improve the incentive mechanism for scientific and technological innovation and entrepreneurship, break through the institutional and institutional bottlenecks of independent innovation, further optimize the design of the tax system, implement and use tax incentive policies to support scientific and technological innovation, and better develop enterprises as the main body, market as the guide, and the integration of industry, academia and research scientific and technological innovation system.

1. Evaluation of current tax policies supporting technological innovation activities

Technological innovation has a certain nature of public goods, and it is inefficient to be completely allocated by the market. This determines Government must be involved in its configuration. Under the conditions of market economy, enterprises should be the main body of innovation. Government intervention in technological innovation activities can correct market failures mainly through the use of fiscal and taxation policies, internalize the external effects of technological innovation, and stimulate technological innovation in enterprises. Among the government's fiscal and tax means, tax preferential expenditures have a higher incentive effect on corporate technological innovation than direct fiscal expenditures, while their implementation costs are lower than direct fiscal expenditures. Because the high profitability and high risk of technological innovation activities determine the uncertainty and discontinuity of corporate technological innovation returns, which often inhibits corporate innovation desires. The government's use of tax expenditure incentive policies to share the risk costs of innovative entities will increase the profit expectations of corporate innovation and provide greater impetus for corporate independent innovation.

(1) The current tax policy has strongly supported innovation and entrepreneurship activities in the whole society

As of 2013, the central and local governments at all levels have implemented the "National Medium and Long-term Science and Technology Development Plan Outline" (2006-2020)", the national "Twelfth Five-Year Plan" science and technology development plan and other development strategies have issued more than 100 tax incentives and preferential tax measures in policy documents. Tax expenditures on turnover tax cover software, animation, integrated circuits, major technical equipment, IT, pharmaceutical products, scientific research equipment, technology business incubators, etc. In terms of income tax, it covers eight major tax preferential policies for high-tech enterprises, technologically advanced service enterprises, software and integrated circuit industries, animation industries, technology transfer, venture capital, financial funds obtained by enterprises, and various technology bonuses. Our country has initially formed a science and technology tax policy system with income tax as the main body and certain characteristics of an innovative system.

1. Support technological innovation with structural tax cuts

First, introduce measures to encourage corporate innovation activities in terms of income tax incentives.

First, further clarify the relevant preferential regulations for enjoying technology transfer exemption and reduction of corporate income tax. In 2010, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on Corporate Income Tax Policy Issues Regarding the Technology Transfer of Resident Enterprises" (Caishui [2010] No. 111), which stipulates the scope of enterprise technology transfer and the implementation procedures for domestic and cross-border technology transfer. etc. have made corresponding provisions to better implement relevant income tax reduction and exemption policies.

The second is to improve the preferential income tax policies for technologically advanced service enterprises. In 2010, the Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the "Notice on Corporate Income Tax Policy Issues for Technologically Advanced Service Enterprises", which stipulates that from July 1, 2010 to 2013 As of December 31, preferential corporate income tax policies have been implemented in 21 Chinese service outsourcing demonstration cities including Beijing, Tianjin, and Shanghai, including a reduced corporate income tax rate of 15%.

The third is to improve the preferential policies for the corporate income tax transition period. In 2010, the State Administration of Taxation issued the "Notice on Further Clarifying the Implementation Standards of Preferential Policies for Enterprise Income Tax Transition Period" (Guo Shui Han [2010] No. 157). For enterprises that are high-tech enterprises and are in the transition period of regular tax reduction and exemption preferential policies, , clarified the relevant provisions for the calculation of income tax rates.

The fourth is to further improve the accelerated depreciation policy for corporate fixed assets in strategic emerging industries encouraged by the state. On October 20, 2014, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on Improving the Corporate Income Tax Policy on Accelerated Depreciation of Fixed Assets" to clarify corporate income tax policies on accelerated depreciation of fixed assets. For biopharmaceutical manufacturing, special equipment manufacturing, railway, shipbuilding, aerospace and other transportation equipment manufacturing, computer, communications and other electronic equipment manufacturing, instrumentation manufacturing, information transmission, software and information technology service industries, etc. 6 For fixed assets purchased by enterprises in certain industries after January 1, 2014, the depreciation life is allowed to be shortened by no less than 60% of the minimum depreciation life stipulated in the Enterprise Income Tax Law, or they can choose to adopt the double declining balance method or the sum-of-the-years digits method for acceleration. depreciation. Instruments and equipment purchased by an enterprise after January 1, 2014 and used exclusively for research and development activities, with a unit value not exceeding 1 million yuan, are allowed to be included in the cost of the current period in one go and deducted when calculating taxable income. These highlight the country’s policy orientation to encourage corporate technological innovation.

Secondly, supplement and improve a number of tax supporting policies and other tax preferential policies that are about to expire. For example, the State Council's "Notice on Issuing Several Policies to Further Encourage the Development of the Software Industry and the Integrated Circuit Industry" (Guofa [2011] No. 4), the Ministry of Finance and the State Administration of Taxation's "Notice on Extending the Implementation of Tax Policies for National University Science Parks and Technology Business Incubators" Notice on the Deadline" (Caishui [2011] No. 59), Ministry of Finance, Ministry of Commerce, General Administration of Customs, and State Administration of Taxation "Notice on Continued Implementation of Tax Policies for Equipment Purchased by R&D Institutions" (Caishui [2011] No. 88), Ministry of Finance , the General Administration of Customs and the State Administration of Taxation's "Decision on Amending the Interim Provisions on the Exemption of Import Taxes for Scientific and Technological Development Supplies and the Provisions on the Exemption of Import Taxes on Scientific Research and Teaching Supplies" (Decree of the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation) No. 63) etc.

Thirdly, adjust import and export tax policies to promote industrial technological innovation. In 2010, the Ministry of Finance, the Ministry of Industry and Information Technology, the General Administration of Customs, and the State Administration of Taxation jointly issued the "Notice on Adjusting the Catalog of Import Tax Policies for Major Technical Equipment" (Caishui 2012] No. 14), which requires major equipment in some fields. The tax policy on the import of technical equipment (some key components and raw materials) will be adjusted to encourage enterprises to carry out technological innovation.

2. All regions will further improve the operability of tax policies.

All regions have issued documents to enhance the operability of tax incentive policies in their regions. Nearly two-thirds of provinces (cities and districts) have issued specific implementation measures for the policy of super deduction of corporate R&D expenses.

Since 2006, the Ministry of Finance, the State Administration of Taxation, the Ministry of Science and Technology and other relevant departments have issued the "Notice on Preferential Corporate Income Tax Policies for Enterprise Technological Innovation" (Caishui [2006] No. 88), the State Administration of Taxation "On the Issuance of Enterprise Research and Development "Notice on the Management Measures for Pre-tax Deduction of Expenses (Trial)" (Guoshuifa [2008] No. 116), the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation "Notice on Issuing the "Administrative Measures for the Recognition of High-tech Enterprises" (Guokefahuo [2008] No. 172), the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation's "Notice on Issuing the "Guidelines for the Recognition and Management of High-tech Enterprises" (Guokefahuo [2008] No. 362) and other documents, additional calculations for corporate R&D expenses The applicable scope, conditions and procedures of policies such as tax deductions, tax incentives for high-tech enterprises, accelerated depreciation of R&D instruments and equipment, and pre-tax deductions for employee education funds have been clearly stipulated, which has effectively enhanced the innovation and entrepreneurial vitality of enterprises.

As of the end of 2011, 24 provinces (municipalities and districts) across the country have issued relevant operational documents on the pre-tax super deduction policy for R&D expenses. Beijing, Tianjin, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Jiangxi, Henan and other places have issued specific implementation measures for the recognition and management of high-tech enterprises in their regions. Some localities have carried out tax policy improvement pilot projects in demonstration areas, taking the lead in trials and achieving breakthroughs. For example, the pilot policy issued by Zhongguancun Science and Technology Park - "Notice of the Ministry of Finance and the State Administration of Taxation on the Pilot Policy for Super Deduction of Research and Development Expenses for the Construction of a National Independent Innovation Demonstration Zone in Zhongguancun Science and Technology Park" (Finance and Taxation [2011] No. 81), Ministry of Finance , the State Administration of Taxation's "Notice on the Pilot Policy for Pre-tax Deduction of Employee Education Funds in the Construction of a National Independent Innovation Demonstration Zone in Zhongguancun Science and Technology Park" (Caishui [2011] No. 82). Policy breakthroughs in this area are mainly reflected in:

First, the "five insurances and one fund" (basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums) paid by technological innovation and entrepreneurial enterprises in the demonstration zone for on-the-job R&D personnel Insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds), clinical trial fees for new drug development and other expenses are included in the scope of super deduction of research and development expenses;

The second is to include employees of scientific and technological innovation and entrepreneurial enterprises in the demonstration zone The pre-tax deduction rate for education funds is increased from 2.5% to 8%, and the excess amount is allowed to be carried forward to subsequent tax years. At present, the above-mentioned relevant policies have been extended to Shanghai Zhangjiang, Wuhan East Lake and Anhui Hewu Beng National Independent Innovation Demonstration Zone (Comprehensive Experimental Zone).

Beijing has also formulated and promulgated the "Notice of the Beijing Municipal Science and Technology Commission, Beijing Municipal Finance Bureau, Beijing Municipal State Taxation Bureau, and Beijing Municipal Local Taxation Bureau on Issuing the Technical Secret Appraisal Methods of the Zhongguancun National Independent Innovation Demonstration Zone (Trial) ” (Jingkefa [2011] No. 471) and other supporting documents. The main breakthrough points include:

First, six categories of national new drugs, national first-level protected traditional Chinese medicine varieties, national crop varieties that have been reviewed (appraised), new generation information technology, national defense patents and technical secrets are allowed Innovative results are declared as core independent intellectual property rights to expand the scope of core independent intellectual property rights;

The second is to lower the threshold for recognition of high-tech enterprises. Enterprises that have been registered for half a year and less than one year can apply for recognition as high-tech enterprises. Issuing a blue background certificate (not eligible for tax incentives);

The third is to adjust and improve the evaluation content of technical experts in the identification of organizational work. Technical experts will no longer evaluate the level of scientific and technological research and development management, the total assets of the enterprise and Organizational evaluation of sales growth rate indicators. The specific implementation methods in these places to improve the operability of tax policies enable enterprises to better use the policies to increase investment in research and development and promote scientific and technological progress.

3. Progress has been made in the implementation of tax policies.

According to statistics, in 2011, the super deduction policy for corporate R&D expenses benefited more than 20,000 companies, with tax reductions and exemptions exceeding 25.2 billion yuan. The total number of high-tech enterprises recognized and the amount of income tax exemptions hit a new high, and the policy plays an important role in promoting regional economic transformation and upgrading. From 2008 to 2011, tax reductions and exemptions for more than 60,000 high-tech enterprises across the country totaled 225.9 billion yuan. During the same period, the taxes paid by these enterprises were 2.1 trillion yuan, and their patents and new products accounted for one-third For more than one policy, the policy benefits are very obvious.

In 2010, the corporate income tax reduction and exemption for high-tech enterprises nationwide due to the 15% tax rate preference was 68.771 billion yuan. The number of high-tech enterprises in 26 provinces (cities and districts) that enjoyed the 15% tax rate preference increased by 43.8% compared with the previous year; 6 There are more than 1,000 high-tech enterprises in each province (municipalities and districts) enjoying preferential tax rates, accounting for more than half of the total number of high-tech enterprises in the country; 15 provinces (municipalities and districts) have reduced or exempted corporate income taxes of more than 1 billion yuan. [1] It can be seen that the identification of high-tech enterprises and preferential tax policies play an important role in accelerating the transformation of economic development methods and have become an important force in the development of emerging industries and economic transformation and upgrading.

The implementation of the pre-tax deduction policy for corporate employee education funds has made new progress. In 2010, 94,000 companies in 10 provinces (cities and districts) including Jiangsu, Liaoning, Guangdong, Xinjiang, Dalian, Hainan, Ningxia, Anhui, Beijing, and Shanxi enjoyed the pre-tax deduction policy for corporate employee education funds. Among them, the three economically developed provinces of Jiangsu, Liaoning and Guangdong enjoy more enterprises enjoying the policy, accounting for 91.49% of the total number of enterprises in the above 10 provinces (cities, districts). There are 3,618 enterprises in the Xinjiang Uygur Autonomous Region that have enjoyed this policy, a year-on-year increase of 159.7%. The amount of income tax payable as a pre-tax deduction for enterprise employee education funds in the region is 173 million yuan, a year-on-year increase of 159.7%; the number of enterprises in Guangdong Province that enjoys the policy A year-on-year increase of 35.8%. The taxable income of the province's enterprise employee education funds deducted before tax was 1.229 billion yuan, a year-on-year increase of 45.43%; 3,212 enterprises in Dalian City have enjoyed this policy, and the pre-tax tax deduction for enterprise employee education funds The taxable income was 464 million yuan; the number of enterprises in Liaoning Province (excluding Dalian) enjoying the policy increased by 8.4% year-on-year, and the taxable income from pre-tax deductions for enterprise employee education funds in the province was 364 million yuan, a year-on-year increase of 8.1%.

(2) Insufficiencies of current tax policies to support scientific and technological innovation

1. Government taxes and fees are not standardized enough, and the mechanisms and policies to promote enterprises to become innovation subjects need to be improved. The non-tax charges, fines and other burdens on enterprises in my country still have problems such as excessive, excessive and arbitrary. Although improvements have been made after years of rectification and clean-up, they are still not very satisfactory. While the government formulates and implements tax incentive policies, it also needs to standardize various charges for enterprises to truly reduce the pressure on enterprises to innovate and start businesses. In addition, when government departments at all levels formulate policies and practices, they often do not fully understand that enterprises are the main investment entities. It is necessary to further clarify the boundaries between the government and the market, and activate enterprises' investment in science and technology by taking less and retaining more, and providing universal incentives. Positivity.

2. Insufficient incentives for human capital, the core element of innovation. In technological innovation, people are the first element. However, for a long time, relevant systems have not fully reflected sufficient compensation and effective incentives for human capital. There are flaws and deficiencies in human capital incentive measures in the current science and technology taxation policy, and there is a lack of a complete tax incentive mechanism for scientific and technological talents. The preferential tax mechanism for human capital has certain room for optimization in terms of corporate income tax and personal income tax.

3. There are too many tax incentives for regions and based on enterprise qualification certification, while there is insufficient tax support focusing on enterprise innovation activities. In the tax preferential support pattern that has been accumulated through the introduction of tax preferential policies for many years, there are preferential tax incentives for different regions (such as regional strategies that have been approved at the high end) and different enterprise qualifications (such as whether they have obtained "high-tech enterprise" certification). There are many, but support policies that focus on corporate innovation activities, especially those of small and medium-sized enterprises, and then effectively use tax means are insufficient.

II. Suggestions on further implementing and using tax incentive policies to support scientific and technological innovation

(1) Seize the opportunity of the introduction of the "Overall Plan for Deepening the Reform of the Fiscal and Taxation System", accelerate the reform of the tax system, and form an effective A tax system environment conducive to technological innovation

On June 30, 2014, the Political Bureau of the Central Committee of the Communist Party of China reviewed and approved the "Overall Plan for Deepening the Reform of the Fiscal and Taxation System", clarifying that a new round of fiscal and taxation system reform will basically be implemented in 2016. Complete key tasks and tasks and basically establish a modern fiscal system by 2020. The overall plan identifies three key reform areas: budget, taxation and fiscal system. The institutional environment has a crucial impact on the technological innovation process. As the provider of the institutional environment, the laws, regulations and policies formulated by the government have an important impact on technological innovation.

In order for tax policies to support scientific and technological innovation to fully exert their effects, it is necessary to combine the overall goals of fiscal and tax reform and the scientific and technological development strategy, deepen the reform of the tax system, effectively clean up, rectify, merge, and reduce extra-tax burdens, and optimize the institutional system to support enterprises as the main body of science and technology. Innovative tax framework and environment.

(2) Summarize experience, make persistent efforts, and further implement tax incentive policies based on the characteristics of innovation activities

1. Promote the implementation of "universal" incentive policies in the innovation policy system. "Inclusive" incentive policies can help give full play to the market's guiding role in technology research and development direction, route selection, factor prices, and allocation of various innovation factors, and guide enterprises to become the main body of technological innovation decision-making, investment, organization, and achievement transformation. We should continue to promote tax-based tax incentive policies to mobilize the enthusiasm of enterprises to engage in scientific and technological innovation, fully reflect the government's policy intention to support scientific and technological innovation, and fully implement inclusive measures such as super deductions for corporate R&D expenses, focusing on the implementation of its operation plans and Implementation details.

2. Further use structural tax cuts to support technological innovation. Accelerate the pace of "replacing business tax with value-added tax", reduce repeated taxation by introducing a value-added tax deduction mechanism in telecommunications and other industries, support the professional segmentation and "endogenous" upgrading efforts in the development of related industries, and actively develop the Internet era. The network economic chain represented by commodity circulation, logistics and distribution, etc., while cultivating emerging industries as the main line, further promotes structural tax reduction policies.

3. Summarize the pilot experience in the demonstration areas and gradually roll out the new policy of super deduction of research and development expenses across the country. The scope of R&D expenses that can be super deducted is narrow, which inhibits the enthusiasm of enterprises to engage in R&D to a certain extent and is not conducive to motivating enterprises to increase R&D investment. We should actively summarize and evaluate the implementation effects of policies such as Caishui [2011] No. 81 and Caishui [2011] No. 82 in Beijing Zhongguancun, Shanghai Zhangjiang, Wuhan East Lake, and Anhui Hewu Beng National Independent Innovation Demonstration Zone (Comprehensive Experimental Zone). , make appropriate adjustments and optimizations, and choose the opportunity to roll it out across the country.

4. Based on the characteristics of innovative activities, continue to improve the operability of tax policies. The characteristics of innovative activities should be further analyzed and understood, and the applicable scope, conditions, procedures, supporting requirements and other details of current policies should be further refined in deepening the reform of the fiscal and taxation systems to improve the operability of tax policies. Promote the effective implementation of existing policies. For example, local governments should formulate and issue specific operating rules as soon as possible for accelerated depreciation of R&D equipment and pre-tax deductions for employee education funds. Continue to use technology transfer tax reduction and exemption policies, technologically advanced enterprise income tax preferential policies, and enterprise transition period preferential income tax policies, and promptly summarize practical experience to improve and perfect the expired policies.

5. Use tax policies to encourage long-term science and technology investment. In particular, we should explore tax incentive policies for specific innovative activities such as the integration of industry, academia and research, and integrated innovative research and development. Generally speaking, this type of scientific and technological innovation activities requires large investments and a long cycle, and the actual risks faced by enterprises are relatively high. On the one hand, resolving risks requires relying on the company's own technical and financial means. On the other hand, it requires the government to adopt tax policies to support technological R&D and innovation activities that combine industry, academia and research, long-term ladder-level achievement transformation strategies, and the cultivation of scientific and technological talent echelons. To reduce comprehensive risks and encourage enterprises and partners to innovate.

6. Strengthen policy incentives for the commercialization of enterprise innovation results. Formulate tax incentive policies that are conducive to the transfer of scientific research results from scientific research institutions and universities to enterprises. At the same time, supporting consideration should be given to further improving laws and regulations regarding the definition of property rights for scientific research results.

7. Strengthen and optimize the tax incentive mechanism for human capital. To establish and improve adequate compensation and effective incentive mechanisms for human capital, we need to start with corporate income tax and personal income tax, adjust and optimize preferential tax policies that are conducive to human capital, encourage innovative activities of scientific and technological talents, and promote the cultivation of innovation and entrepreneurship awareness in the whole society. and promote. We can learn from France’s 30-year-old and highly effective industry-university education agreement system. (CIFRE () The French government funds doctoral students to complete their doctoral thesis in companies. Companies usually sign three-year employment contracts with doctoral students required to complete their thesis. Every time a company hires a doctoral student, it will receive an annual subsidy of 14,000 euros from the government for three consecutive years. subsidy, and enjoy an annual tax exemption of 14,000 euros, but the company must pay the doctoral students an annual salary of no less than 23,000 euros) to explore similar feasible solutions based on China's actual conditions.

8. Improve relevant working mechanisms and coordination mechanisms.

It is necessary to improve the working mechanism for tax preferential management, improve the transparency of tax policies, optimize information exchange with enterprises, relevant colleges and institutions, and timely and objectively evaluate the implementation effects of tax incentive policies. At the same time, establish a joint working mechanism between the tax department and the science and technology department, strengthen policy publicity and consulting services, and strengthen coordination and cooperation with the judicial department in legal affairs in conjunction with matters such as intellectual property protection.

References

[1] Fang Zhong: "Research on the Correlation between Enterprise Independent Innovation and Tax Policy", PhD thesis of Hefei University of Technology, 2010.

[2] Huang Yongming, He Wei: "Tax Incentives for Technological Innovation: Theory and Practice", "Fiscal Research", Issue 10, 2006.

[3] Zhang Wenchun: "Analysis of the role and mechanism of taxation policies in promoting the development of high-tech industries", "Journal of Renmin University of China", Issue 1, 2006.

[4] Zhao Zhigeng: "Taxation Policies to Promote Independent Innovation", "China Taxation" Issue 5, 2006.

[5] Han Jie, He Yuxin, Cheng Shihua: "Supporting the overall situation and focusing on the long term: A review of deepening the reform of the fiscal and taxation system."

About the author

Jia Kang, Director of the Institute of Fiscal Science of the Ministry of Finance

Liu Wei, researcher of the China New Supply-side Economics Research Institute