This paper deduces the potential relationship between tax incentives and entrepreneurial performance and its influencing mechanism with theoretical model, and conducts empirical research by using sample data from 376 Internet enterprises in 8 cities including Beijing and Shanghai. The research results show that tax incentives are the key factor affecting entrepreneurial performance. Tax incentive has a positive impact on entrepreneurial R&D expenditure. The more tax incentives they enjoy, the higher their enthusiasm for R&D investment will be. The proportion of R&D and the happiness of R&D personnel play a moderating role between tax incentive and entrepreneurial performance.
