Enterprise Scale and Tax Burden: Empirical Research on Chinese Enterprises - Innovative Management in Information and Production - page 139

Enterprise Scale and Tax Burden: Empirical
Research on Chinese Enterprises

Jing Huang

Abstract The scale of an enterprise usually represents the different stages in
the enterprise's development. In this article, through empirical investigation of
enterprise scale and tax burden, the tax burden differences between different
enterprises in China have been investigated.

Keywords Tax burden ￿ Enterprise scale ￿ Small-scale enterprises ￿ Large-scale
enterprises

1 The Research on Chinese Enterprise's Scale

and Tax Burden

There are not many research works of the study to the relationship of the scale
and tax burden on Chinese enterprises ( Lin and Shen 2009 ; Piao 2005 ). Most of
these research works stay in policy discussion and qualitative analysis and lack of
empirical data to support ( Chandler and Hanks 1993 ; Man 2002 ). Here we use
distance analysis method and survey data to make an empirical analysis of this
problem.

1.1 Enterprise-Scale Distribution in China

Divided by enterprise scale, there were 200,615 small-scale enterprises (M1) (by the
end of 2006 in China); the proportion was 72.53 %, an increase of 8.52 % comparing
with the last year's data; 58,200 medium-scale enterprises (M2), the proportion was
21.04 %, an increase growth rate of 12.79 % comparing with last year's data.