Dissertation
Dissertation > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management

Corporate income tax and corporate investment cost

Author WuWei
Tutor MaGuoQiang
School Dongbei University of Finance
Course Finance
Keywords Corporate Income Tax Cost of business investment Tax incentives
CLC F275
Type Master's thesis
Year 2005
Downloads 389
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The investment decisions are determined by the after-tax investment income, investment income depends on investment output and the comparison of the cost of investment decision. Tax policy by influencing business investment costs which can affect their investment decisions. In many taxes, corporate income tax had a greater impact on the cost of business investment, government departments main use of the corporate income tax policy to reduce the cost of business investment, to encourage enterprise investment. In this paper, empirical research methods, formulas, models, numerical analysis of the corporate income tax on the cost of business investment, the analysis of the effectiveness of the enterprise income tax preferential tax impact on the cost of business investment, and finally combined with the above analysis and learn from foreign experience, China's corporate income tax policy suggestions for improvement in order to reduce investment costs and promote business investment. This paper is divided into four parts: the first part: the cost of business investment and corporate investment decisions. First introduced the development of investment theory has gone through three stages: the neo-classical theory of investment, q-theory and irreversible investment theory. By three theoretical analysis and comparing the use of the neoclassical investment theory model of corporate income tax on the cost of business investment, does not affect its scientific nature. Then analyzed the two decisive factors affecting investment, investment in marginal output and marginal cost of investing. Finally, a brief analysis of the factors that affect the cost of investment. Part II: the corporate income tax base tax system on the cost of business investment. The first provides an overview of the content of the corporate income tax base tax system, and then analyze the content of the benchmark tax system affect the cost of business investment. Neoclassical investment theory model to analyze the impact of the statutory rate of income tax on the cost of private investment capital, cost the standard deduction, tax period and dividends double taxation on corporate investment costs. Part III: corporate income tax, tax incentives for enterprises to invest in cost. Begins with a brief description of the eight forms of income tax benefits, in addition to breakeven impact on corporate investment risk, seven other preferential form of corporate investment cost impact. Next to classify these seven concessions comparative analysis and neoclassical investment theory model to analyze the tax exemptions, accelerated depreciation, and the impact of the credit for investment in these three concessions on the cost of business investment, and a comparative analysis of their advantages and disadvantages . Finally, the empirical validity of the enterprise income tax preferential tax impact on the cost of business investment. Due to the imperfections of China's statistics, you can not use the model to analyze the income tax of Private Investment. This section describes other national enterprise income tax preferential tax effect of the impact of the cost of business investment in the world

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