After The "VAT Reform", Promote The Research On The Improvement Of The Taxation System Of The Financial Industry

Financial industry is an important industry in China's national economy,the tax system of the financial industry,as an important part of China's tax system,in addition to contributing important revenue to the country,but also subtly brought a profound impact on the financial industry.Based on the basic theories such as tax principle theory,tax neutral theory,optimal tax system theory and tax function theory,this paper,through the vertical comparison between history and today,and the horizontal comparison between other industries and developed countries,reveals the problems existing in China's financial tax system,combined with the historical opportunity of successful completion of the reform “Business Tax transform to Value Added Tax”,puts forward the proposal that the improvement of the taxation system and the taxation legislation should complement each other.At the same time,regarding to the guiding ideology and path selection,this paper proposes relevant policy recommendations to promote the improvement of the taxation system and legislation of the financial industry in China.According to the above ideas,this article discusses the following:The article first explores the historical evolution and development process of China's financial industry taxation system,and summarizes the characteristics of each stage.The evolution of the financial industry taxation system is compatible with macroeconomic development,but the development of China's financial industry taxation system still needs to pay attention to some issues.Standing in today's historical time and space,the article summarizes and evaluates the current characteristics of China's financial tax system,and more deeply expounds the status quo,characteristics,and existing problems of China's financial industry tax system.The article focuses on the impact of the “Business Tax transform to Value Added Tax” on the financial industry,including its impact on the tax burden of the financial industry,and its impact on its business model,operating results and management behavior.From several different aspects,it evaluates the historical role of " Business Tax transform to Value Added Tax " in the reform of financial tax system,its impact on the financial industry and its significance.Based on the well-represented data of the five state-owned commercial banks,through empirical analysis,reaches the conclusion that taxation on financial entities,especially indirect taxes,which has a non-neutral impact on the production,the financial entity's profitability and efficiency are reduced,which in turn affects operation and development status of financial entities,and finally affects the efficiency and vitality of financial markets to a certain extent.At the same time,with the decline of the enthusiasm of financial entities,it will affect China's macroeconomic development to a certain extent.After the empirical analysis,the article discusses how to reflect the tax-neutral characteristics of a scientific and modern financial industry tax system,how to choose a tax-neutral path.By comparing the overall tax system design ideas and tax elements of relevant countries in the world,analyze the reasons behind the design of tax structure,tax types and tax elements from direct tax and indirect tax perspective,analyzes the reference significance of tax system of those countries for China.Under the circumstance of double-subject taxation in China's financial industry,perfecting enterprise income tax and value-added tax is a powerful grasp to improve China's financial taxation system.After the reform of " Business Tax transform to Value Added Tax ",the legislation of VAT in financial industry has become urgent.This paper expounds the necessity and feasibility of financial tax legislation.In the choice of legislative path,we should choose a mode of legislation through principles,at the same time,in the specific content of the law,make sure that the relevant product service agreement is clear.After the "Business Tax transform to Value Added Tax" reform,the tax enviroment has become more relatively stable,we should try our best to make tax legislation before tax reform.The legislation of financial industry should clarify the relationship between legislation and authorization,promote the formation of modern tax system structure,clarify policy objectives and adhere to the original intention of tax system reform.Combining the hot issues at home and abroad,it is proposed that the improvement of taxation system and taxation legislation complement each other.China should focus on establishing a taxation system that adapts to economic globalization,guards against financial crisis risks,and enhances international competitiveness.The improvement of the taxation system and the taxation legislation complement each other.The improvement of the tax system should be improved by deepening the reform of the tax system,condensing the elements of the tax system,and leading it through tax legislation,and then to promote the process of tax legislation.China's tax legislation should be forward-looking and give better play to the leading role of tax legislation in improving the tax system.Under the overall idea of complementing the taxation system and taxation legislation,from the perspective of the specific legislative content of the taxation system,that is,from the perspective of direct taxation,indirect taxation structure and content,it provides innovative suggestions for the improvement of taxation structure and taxation elements.The possible innovations of this article are as followings:The writing perspective is innovative.From the perspective of the main body of the taxation policy of the financial industry,the paper studies the improvement of the taxation system of the financial industry after the implementation of the “Business Tax transform to Value Added Tax ”.The model establishment,variable setting and conclusion analysis of the empirical analysis part are innovative.The paper use panel data which is the data mixture of time series data and cross-section data.The policy variable,tax variables and the variables that can represent the financial industry operating indicators are selected to establish a model,leading to a conclusion that taxation brings non-neutral effects to the financial subject's profitability,operating efficiency and scale.It laid the foundation for the analysis of the ways to achieve tax neutrality.When comparing the taxation system of the relevant countries in China and the world,this paper does not simply analyze the differences in the content of the taxation system,but from the concept and overall thinking of the design of the taxation system,analyzes the deep-seated reasons behind the design of the taxation system,and combines the economic development of China.According to the status quo and the characteristics of China's financial industry,put forward the place where China's financial industry taxation system needs to learn from relevant international countries.This paper presents the following conclusions:The empirical analysis shows that the financial industry's taxation affects the profitability,operational efficiency and scale of financial entities,which in turn affects the vitality and efficiency of the financial industry,and is not conducive to the display of the tax neutral characteristics.It proposes to reduce the tax burden by reducing the taxation as much as possible,and to reduce the tax burden,especially the indirect tax burden,narrow the tax exemption scope,ensure the complete deduction chain,and set the taxation link reasonably to achieve tax neutrality and improve the overall welfare of society.Reducing the cost of tax compliance is also an important aspect of tax neutrality.Tax neutrality is not only about the current tax amount,but also about not to impose excessive burden on taxpayers,reduce tax compliance costs,and improve overall social efficiency.By comparing with the financial industry tax structure and tax elements of relevant countries in the world,analyzing the design reasons,concepts and development ideas,and proposing the need to establish a sense of the overall situation,comprehensive consideration of strategic and systemic issues,and the need to consider the tax structure and connection of tax types.Optimizes the tax elements while increasing the proportion of direct taxes and reducing the proportion of indirect taxes.Combined with the current situation of China's economic development,China is not suitable for levying functional taxes such as bank tax,but it can be used for reference by relevant international countries,rationally designing indirect tax collection links,and piloting the principle of value-added tax on consumption,in order to better play the tax neutral characteristics and balance the tax source.Regarding the reduction of tax rate and tax rate in the tax elements,the economic and financial development of the relevant countries in the world is different.In the process of reducing the tax rate,China should consider how to improve the tax incentive system at the same time.Under the background of financial globalization,digitalization and interest rate marketization,combined with the current hot issues of macro-economy and society,this paper puts forward some ideas to improve the taxation system of financial industry.This paper innovatively puts forward the relationship between the improvement of the taxation system of the financial industry and the taxation legislation.The two promote each other and complement each other.Deepening the reform of the tax system,consolidating the elements of the tax system,and improving the taxation system of the financial industry are the basis for promoting the taxation legislation of the financial industry;and implementing the statutory principle of taxation,promoting tax legislation and leading the reform of the tax system.Advancing the improvement of the taxation system should take into account the balance between fairness and efficiency,the suppression of financial risks and the promotion of financial innovation,the establishment of a balance between Chinese characteristics and international standards,the optimization of the tax structure and the construction of a local tax system.China's macroeconomic situation and the hot spot of financial industry development inevitably affect the development and evolution of the financial industry tax system.In the context of financial globalization,digitization,and interest rate marketization,combined with today's macroeconomic and social hot issues,it should be more givw full play to the leading role of legislation in the forward-looking improvement of the financial industry tax system.Combined with the characteristics of the financial industry,this paper discusses the principled legislative model based on the fact that one tax rule for one product or service which is clarified in the tax elements.At the same time,in the case that the tax elements are relatively scientific and reasonable and the tax environment is relatively stable after the implementation of the “Business Tax transform to Value Added Tax”,the path of reform after legistation should be used as much as possible.For the specific suggestions for improving the indirect taxation system of the financial industry,the paper puts forward: 1.The indirect taxation system for core business such as traditional credit business should be improved as soon as possible.For short-term,loan interest expense tax should be allowed to deduct partly,within the scope of fiscal revenue budget.Reduce the financing cost of the real economy;For the medium term,loan interest expense tax should be allowed to deduct,and long term,it should give tax exemption for the core business of the financial industry and the input tax deduction policy for borrower enterprises.2.With the further deepening reform of China's VAT reform,the VAT rate should be further reduced and simplified.In the shortterm,we will improve the financial industry-related deductible supporting policies with reference to the input tax deduction policy of the modern production and service industry.In the medium term,we will consider adjusting the higher two-grade VAT rate and appropriately reducing the core business tax rate of the financial industry.In the long run,with the completion of the reform of China's VAT,three grades reduces to two grades,the core business of the financial industry is tax-free.3.For the financial industry-related business,straighten out the value-added and determine a reasonable tax base.4.Reasonably determine the scope of taxation.5.Integrate VAT reform into the process of central and local taxation construction;the distribution of tax revenues in the central government should protect the enthusiasm of local governments and adopt the principle of delegating financial powers to make local governments motivated.China can consider the current proportional conversion method to a combination of the special industry distribution principle and the consumption place principle.For some special industries,the VAT income belongs to the central government,and it is used for risk prevention,crisis response and compensation tax expenditure.For other industries,combined with the proportion that can be adjusted,the pilot implementation of valueadded tax on consumption,in order to better reflect the tax neutrality,fair tax burdens in various regions,so that local governments pay attention to the quality of development.6.Promote the construction of VAT electronic invoices as soon as possible,improve the efficiency of collection and management,and reduce compliance costs.7.Make good use of tax incentives,aim to improve the capital market tax preferential policies,promote small and micro enterprises and agricultural development and so on,so that the financial industry can better serve the real economy.For the specific recommendations for improving the direct taxation system of the financial industry,the paper proposes: 1.Reasonably set the corporate income tax burden of the financial industry.2.Reasonably set the income tax rate structure.3.Value more the financial industry risk prevention in the corporate income tax system.4.Further improve tax incentives and better play the role of the financial industry in supporting the real economy.In short,after the implementation of “Business Tax transform to Value Added Tax”,we should actively promote the improvement of the taxation system of the financial industry,and accelerate the legislative process of the financial industry tax system(such as value-added tax)that adapts to and promotes the development of the financial industry.