Analysis of the Impact of Corporate Income Tax Incentives on Digital Economy Enterprises

Abstract

This paper evaluates the effect of income tax preferences for digital economy enterprises based on the data of digital economy enterprises in Beijing, Tianjin and Hebei regions from 2017-2021 (in line with the narrower caliber of the National Bureau of Statistics). The research results show that corporate income tax incentives have a significant impact on R&D investment of digital economy enterprises and provide a better incentive for digital economy enterprises to increase their R&D investment efforts. Tax incentives are heterogeneous in nature of property rights for digital economy enterprises, among which there is a greater promotion for private enterprises. Finally, this paper further expands the study on the factors influencing the innovative capability of enterprises and proposes policy recommendations on the relationship between tax preferences and innovation capability of enterprises based on the empirical results.

Keywords

• digital economy
• tax incentives
• enterprise innovation