Research on the Impact of Digital Economy on the Transfer of Corporate Income Tax between Provinces in China

In recent years, there has been continuous progress in information and communication technology, digital economy in China has been developing rapidly and gradually becoming the backbone of high-quality economic growth. In promoting economic development, the digital economy also has a profound impact on the distribution of tax revenue among different regions in China. This article is based on panel data from 30 provinces in China from 2013 to 2019. By constructing digital economy indicators and measuring the digital economy index, it empirically analyzes the impact of the digital economy on inter provincial corporate income tax revenue and tax transfer in China. The research results show that the digital economy has significantly promoted the growth of corporate income tax revenue between regions in China, but it has also promoted tax transfer between provinces. Further research finds that the digital economy effectively promotes corporate income tax inflow in the eastern region and tax outflow in the other three regions.