Effective Direct Taxes Rates Indicatiors Design And Related Factors Analysis

In<Forbes> magazine latest statistics of the 2009 world report on Tax Misery Index, the simple sum of the marginal taxes rates, China is second only to France as the second highest tax state of the world. The World Bank and PricewaterhouseCoopers teamed up to publish<Paying Taxes 2009-The global picture> report, China ranked 170 in 181 economies, integrated tax rate was up to 79.9%. So-called corporate tax rate in the report is the total effective tax rates of enterprises in China? What indexto measure? In my opinion, fromthe macro and micro level, the corporations do not pass all of indirect taxes to consumers, so in the report, corporation taxes rates considering only direct taxes, such a view is incomplete. In this paper, I make use of the method in<Paying Taxes 2009-The global picture> to measure the burden of corporate taxes, to design an index more applicable for the financial information, more suitable for Chinese conditions and Chinese corporation accounting system. Using this index of corporate direct tax burden, I make use of 132 companies listed in the Shenzhen Stock Company 2006-2009 annual data to calculate the corporate direct taxes rates. The author adopts quantitative analysis methods to inspect if the macro and micro factors are significant to corporate direct taxes rates or not. Statistics show that Chinese large enterprise direct taxes rates are indeed heavy, but mainly due to a heavy burden on social security contribution rates, while the corporate income tax burden is light. Measurement results show that industry, size, profitability and other factors are significant to corporation direct tax burden. Then I take advantage of 175 enterprises of different sizes in 17 cities of Shandong Province to calculate the direct tax burden, I find that differences on the scale of the impact is significant for coiporate direct tax burden, and results compared with the results of the World Bank report and the results of listed companies in Shenzhen Stock Exchange, prove the heavy corporation direct tax burden is caused by the high social security contribution rates. This paper is structured as follows:Chapter 1 describes the theoretical background, policy relevant background and the concept of tax burden, Chapter 2 describes the literatures how to measure the corporation tax burden and the literatures related factors affect the tax burden, Chapter 3 briefly introduces the World Bank,<Paying Taxes 2009-The global picture> how to measure the corporate tax burden, and then design an index more suitable for Chinese enterprises actual financial data, Chapter 4 uses the preceding corporation direct tax burden to calculate the index by taking 132 listed companies in Shenzhen Stock Exchange 2006-2009 annual data, its statistical calculations mean that high corporate direct taxes rates are mainly due to high levels of social security contribution, meanwhile, I do the factor analysis of the corporation direct taxes rates, Chapter 5 makes use of 17 cities of Shandong Province,175 enterprises of different sizes of the annual financial data for statistical analysis, finds that different sizes of enterprises lead to different effective direct taxes rates, and the results compared with the World Bank report and listed companies in Chapter 4, has once again proven the conclusion that the high corporation direct taxes rates caused by high social security contributions rates, Chapter 6 under the foregoing analysis of statistics and measurement, proposes that income tax incentives policies should be strengthened between industries and regions, reduce the corporate pay social insurance contributions rates, and improve government paid in proportion in social security contributions, optimize the local government revenue structure and reduce local government fees.