Innovation of tax incentives in the context of integration of traditional industries and digital economy

Author:

Chen Wei1,Chen Ding2

Affiliation:

1. 1 Tianfu College of SWUFE , Chengdu , Sichuan , , China .

2. 2 Sichuan Vocational and Technical College of Communications , Chengdu , Sichuan , , China .

Abstract

Abstract With the development of the digital economy, the innovation of the tax preference method is necessary. This paper integrates traditional industries with the digital economy through digital technology, standardizes the tax preference data of digital industries by using a fuzzy comprehensive evaluation algorithm, and builds an innovative mechanism of tax preference by establishing two weighting indicators of tax relief ratio and Q value (tax relief locational entropy) through data feedback. To ensure the accuracy of the feedback indicators, the full-factor algorithm is invoked to detect the intensity of the mechanism’s preferences in the digital industry. To verify the effectiveness of the mechanism, the results of the practical analysis show that after the innovation mechanism constructed in this paper is put into practice, the proportion of tax breaks in two digital industries, manufacturing and industry, increases by 29% and 34%, respectively, and the Q values of the five industries increase by about 4.2% on average, and the yields all increase by about 5.12 percentage points. This illustrates that the tax preference innovation mechanism constructed in this paper can accelerate the economic development of industries and is conducive to giving full play to the positive incentive effect of tax preference on their material benefits.

Publisher

Walter de Gruyter GmbH

Subject

Applied Mathematics,Engineering (miscellaneous),Modeling and Simulation,General Computer Science

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