Research On Transition Of Value-added Tax In Northeast Industrial Base Of China

Since the tax system reform from 1994, China has carried out production-oriented value-added tax which doesn't allow to off-set the fixed assets, and this kind of value-added tax adapts to our country's situation. With the establishment of our socio-market system and the further regulation of economic structure, the conflict between system of value-added tax and economy is more and more obvious. In 2003, the central government decided to carry out the reformation from production value-added tax to consumption value-added tax in Northeast Regions ,to develop Northeast industrial base. Financial department and State tax bureau issued"Regulation of Northeast increasing value-added tax off-setting scope"and decided to carry out trial base transition of value-added tax. Consumption-oriented value-added tax has been put into practice from theory, which implies that the transition of value-added tax is proper.The article is composed of five parts. The first part describes theories about value-added tax, consisting of definition of value-added tax, intrinsic contradiction and effective theory analysis. The second part describes the situation of northeast transition of value-added tax, the economic characteristics of value-added tax transition, and real function appraisal analysis of value-added tax transition. The third part describes some problems during value-added tax transition: incremental off-setting limits the total effect of value-added tax transition; low amount of off-setting and back tax is bad for enterprises; some enterprises are hard to get the tax preference because of off-setting unpaid tax; there are many limits to army industries and technology industries; the scope of trial base is limited. The problem of exempted unpaid tax isn't solved in time. These problems are bad for transition of value-added tax. The fourth part describes successful experience of consumption-oriented value-added tax in Europe and South Korea and the transition significance to northeast. The fifth part probes into some concrete strategies: the first is to increase the taxation scope, develop the value-added taxation, put obvious industries which have many problems in the process of value-added tax reformation into the scope; the second is to carry out total off-setting instead of incremental off-setting, because it doesn't arrive at the expected objects, and the enterprises doesn't get much; the third is to increase the off-setting scope of army industry and technology industry; the fourth is to carry out several taxation with the value-added tax, decreasing the percentage of value-added tax, consolidating income tax, revising consumption tax, levying new tax, to guarantee the fiscal revenue; the fifth is to consolidate the tax management, control the tax resource, develop ratepaying appraisement, consolidate tax propaganda, increase the consciousness of ratepaying, predigest procedure of back tax and off-setting, decrease the cost of management, and carry out the third Project of Golden Tax. We also consolidate correlative strategies: the first is to manage small size taxpayer, decrease the rate, and encourage the small size taxpayer to develop into general taxpayer. the second is to perfect system of taxation, increase the right of local government, to offer capital for the reformation of value-added tax; the last is to construct the social system of service network to perfect value-added tax system.