The Relationship between Income Tax Burden and R & D Investment of High-Tech Enterprises

Abstract

This paper takes 162 Chinese high-tech listed companies as samples to study the relationship between corporate income tax burden and R & D investment in short-term and medium-term. Then selects electronic information industry and aerospace industry to make corresponding descriptive statistics and regression analysis to test whether the corporate income tax burden is affected by the industry ’ s R & D investment, and further verify whether the relationship between corporate income tax burden and R & D investment is consistent with the industry-wide analysis results. It compare s tax burden dependence in different industries. The empirical finding: whether in the short-term or medium-term, reducing the corporate income tax burden can promote the company ’ s R & D investment, and in the medium term performance is more significant. The regression analysis of the electronic information industry and the aerospace industry also verified this result and found that reducing the tax burden on the aerospace industry ’ s R & D investment is stronger than the electronic information industry.