Tax Incentives and Subsidies as Tools for Developing the Impression Economy: Chinese Experience

The object of the study is the economy of impressions of China. The subject of the study is the impact of tax incentives and direct government subsidies on the amount of investment in research activities of enterprises in the impression economy of China.

The purpose of the work is to propose fiscal instruments aimed at optimizing activities in the field of the impression economy in China based on identifying the optimal way of state support for the development of the impression economy in conditions of close integration of culture and technology in the modern economy. The article analyzes modern measures of fiscal support for the development of the impression economy in China, and also checks the justification for stimulating the research activities of enterprises of the impression economy of the People’s Republic of China based on the prospects for their growth through direct government subsidies and the provision of tax benefits. At the same time, the impact of the relevant fiscal instruments to support the impression economy is assessed. It has been established that tax incentives can contribute to the activation of research activities of Chinese enterprises in the impressions economy sector and their effect from tax incentives may be more significant than from direct government subsidies. For the purposes of the study, a model of multiple linear regression is used. The factors contributing to the effective research activities of enterprises and organizations are analyzed.

It is concluded that it is necessary to further strengthen tax incentives for enterprises in the Chinese economy in the post-pandemic period. Fiscal measures aimed at developing the impression economy in China are proposed.

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