Abstract: Whether it is on account of promoting the rule of law of the tax incentives for sports industry and realizing the inter-legal linkage pertaining to the tax incentives for sports industry, or taking the overall consensus of creating the tax incentives conducive to the sports industry into consideration, it is the right time to set up special tax incentives for sports industry with the help of the amendments to the Law of the People's Republic of China on Physical Culture and Sports (hereinafter as Sports Law). To formulate tax incentives for the sports industry that are of substantial rationality, formal legitimacy and technology justice, it is necessary to uphold the Sports Law superior to the design of the tax law, and adhere to the legislative strategy of the sports industry's in-depth participation and the legislative position established on the basis of the tax incentives of sports industry. At the same time, it is necessary to follow the principles from the taxation on capacity to proportionality and the design basis from the tax legal prescription to the authorized legislation. It is also necessary to abide by the technical standards of intelligibility, structure, effectiveness and integrity, and follow the "tax incentive-oriented" design scheme.