Research On Changes In Business Environment And Corporate Tax Burden

Chinese economy is at a pivotal period of transformation and upgrading.Domestic and international environmental changes have brought unprecedented challenges to China,but there are opportunities in dangers.In this period,it is necessary to improve the business environment to stimulate the vitality of market entities.China has taken a series of measures that have been quite effective.To deepen the reform of the business environment,promulgate various policies to reduce the burden of them is a pivotal step,of which "tax cuts and burden reduction" is very important.Corporate tax burden is closely related to the business environment.This paper explores three sub-environments of the business environment,the market environment,the government service environment,and the rule of law environment,on corporate tax burden.The main conclusions are:First,this article finds that the huge decline in corporate performance will increase the actual tax rate of other corporates in the same city.Second,this article finds that the provincial governor or secretary of the provincial party committee from the central government had a better effect on pushing the reform"replace the business tax with a valueadded tax" forward,that will reduce the corporates’ value-added tax rate.Third,the establishment of a liquidation and bankruptcy court will reduce the tax burden of local companies.This article focuses on China’s business environment,but it is not a general overall analysis of the business environment.This article disassembles the business environment into three sub-environments.And through the three perspectives to explore the impact of the business environment on corporate tax burden.This article not only provides more comprehensive theoretical support and empirical evidence for understanding the influencing factors of corporate tax burden under China’s "tax cuts and tax burden reduction" policy in the new era,but also help the scholars and governments better understand the impact of the business environment on corporate development.