A Study on the Reform of Tax System that Drives Enterprises’ Self-Innovation

Shuqing Li

Abstract


Enterprises’ ability of self-innovation determines the fate of one country or nation. The 5th Plenum of 16th CPC Central Committee advocates enhancing Chinese enterprises’ self-innovation, which is an important strategic decision, aiming at prospering Chinese nationality. Self-innovation determines China’s Advantage of Backwardness. From this point of view, this paper argues that present tax policies in China could not support the self-innovation enterprises strongly because of deficiencies in regulations of income tax and value-added tax. Finally, based on introducing the tax policies that support self-innovation enterprises in foreign countries, this paper puts forward relevant countermeasures and suggestions for the reform of China’s tax system. For example, reform the income tax and value-added tax. At the same time, official branches should impose strict supervision on tax, avoiding enterprises illegally taking advantages over China’s favorable tax policies.

Full Text: PDF DOI: 10.5539/ass.v4n2p33

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This work is licensed under a Creative Commons Attribution 3.0 License.

Asian Social Science   ISSN 1911-2017 (Print)   ISSN 1911-2025 (Online)

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