Analysis And Research For China's Banking Taxation System

Banking as the core of the modern financial system is an important component of the national economy. The stipulation of the banking taxation and its optimized process would seriously affect the profitability and development of banks, and even affect the development of the entire national economy. In recent years, with the continuous development and opening up of China's banking industry, China's banking taxation have also carried out a lot of reforms, from January 1, 2008, both foreign-funded and home enterprises use the《PRC enterprise income tax law》uniformly. However, due to various reasons, compared to the banks of other countries of the world, especially the developed countries, Chinese banking taxation still has many shortcomings that hampered China's banking reform and development.Moreover, in 2007 China's WTO accession commitments fulfilled, the full liberalization of the nation's financial markets, both regional business, forms of organization or degree of openness are constantly expanding, and some of the limitations for foreign banks have been gradually abolished. Therefore, the competitiveness of China's banking industry has become more intense, and the relevant tax reform has become more urgent.Based on this background, this paper uses the financial theory and other relevant theory. The research methods include normative analysis, empirical analysis and comparison analysis. Firstly, the article described the development process and the characteristics of Chinese banking taxation. Secondly, the article analyzed the tax burden on China's banking industry and its tax structure, and concluded that the tax burden is too heavy, our tax system structure is irrational and the lower profitability of the banks. Thirdly, by introducing the major developed countries and regions abroad in the banking system, which summed up for the reform of China's banking system. Finally, put forward suggestions about China's banking system reform, the goal is to reduce the tax burden, to improve tax treatment for loan losses, to promote financial innovation, and ultimately improve the competitiveness of China's banks.