The Research On Tax Cost Management In China

Tax work is an important content of the government's economic work, the important leverage and economic support that government co-coordinates development of society. In recent years, government insists on levying tax so as to achieve annual revenue growth, but the problem of tax costs has become increasingly acute while the growth of tax revenue. Compared to the other foreign countries, China has "three high" phenomenon that is high cost of taxation, high cost of paying taxes and high cost of the overall taxes, which shows "way higher" trend. High cost and low efficiency have become the potential problems of Chinese tax revenue. Therefore, strengthening tax administration, reducing tax costs and reducing corporate tax burden may become the urgent issues to solve in the new tax reform, which will create a favorable tax environment for the rapid economic development.This paper began with theoretical foundation and discussed the connotation of tax costs, pointing out that tax costs contained cost of levying tax, cost of paying tax and other tax effects. With emphasizing on analyzing the factors that affected tax costs, it tried to analyze tax costs by the decision-making model of tax costs. Then it revealed the status and the urgent problems to solve through the large amount of data and survey results. At the same time, this paper described the current tax policy and analyzed the reasons that Chinese tax costs were high from tax cost consciousness, the taxation system, the existing tax system and tax environment to find the breakthrough to resolve tax cost management problem. Besides it introduced that Germany, Japan, the United States and other developed countries used the tax policy in practice to achieve cost management revenue optimized. Through analyzing the successful experience of foreign countries, it summarized the common part so as to provide experience and inspiration for us to use tax cost management. Finally it put forward the strategies to optimize Chinese tax cost management, including enhancing the cost-efficiency concept, appropriately compressing the level of management, stardardizing institutional setup, improving the level of information management of tax management, simplifying processes of collection and management, reforming current tax rule, building scientific tax cost management system, improving the quality of tax officials, improving taxation agency system, increasing service quality of tax intermediary and so on. By the above reforming strategies, it is hoped that it may benefit to optimize Chinese tax cost management.