The Research On Tax System Reform Of The Bank

The banking industry is the core of modern economy, and its stability and development plays a vital role in the healthy operation of the national economy. The bank tax is not only the multiple dimensions affect the development of the banking industry, but also can produce macroeconomic effect on the national economy by investment and other conduction mechanism. In the context of economic and financial globalization, the research on bank tax reform has a significance of guidance for how to effectively adjust the financial tax system, to adapt to the requirements of the international development of the market economy, and improve the operational efficiency international competitiveness of the banking sector. After the2008financial crisis, many countries in order to stimulate economic recovery, have adjusted the tax system, and the reform is focused on bank tax system, which also provides an important opportunity for tax reform of China’s banking.The basic tax system of China’s banking industry is established in the tax reform of1994, taking into account the socio-economic environment then, the design of the tax system thinking focused on the guarantee of financial revenue, and failed to fully consider the characteristics and development needs of the banking industry. Though several adjustments did not change the basic pattern of the tax system, business tax and income tax have been the main taxes in the banking sector. Their revenue accounted for about90%of the banking industry’s overall tax. With the new changes in the economic situation, the drawbacks of the current tax system is increasingly apparent, has seriously hampered the development of the banking industry.Our banking sector is still the scope of business tax and the tax system design in itself flawed. With most of the industries have implemented VAT, the two parallel taxes interrupt the deductible chain and brought a more serious double taxation. The new corporate income tax solved a lot of problems in the past, but there are still deficiencies, especially in financial loss of the pre-tax deductions. With the accelerated pace of financial innovation, financial derivatives in China tax policy has lagged behind, and so on. In the above problems, the goods and service tax system is the core issue of tax reform in the banking sector. The current tax system determines that the simple alternative measures of repair and adjustment of the business tax can’t fundamentally eliminate constraints on industrial development. To expand the scope of VAT have been included in the national "12th Five-Year" tax reform plan, the banking industry as an important area of the reform, its direction of tax reform is more clearly. We should speed up the research as soon as possible with the international standards.Based on the fiscal and finance theories, this paper uses the methods of normative analysis, empirical and comparative analysis to study our current bank tax system in depth and raises China’s banking the general idea of tax reform and specific suggestions combined with the taxation of foreign banking experience. The problems are mainly discussed as follows:the reform of goods and service tax in the banking, corporate income tax reform, the improvement of the tax system of financial derivatives and so on. Among these problems, the reform of goods and service tax analyzes the necessity and feasibility of levying VAT on the banking and put forward the specific tax system design considering the effect of the tax reform and the impact on the financial income and other factors. Because the above reforms need a higher level of collection and management to match and there are some institutional barriers, the relevant supporting measures are proposed at the end of this article.It should be noted that the specific programs designed need to demonstrate through large amounts of data estimated. Because of the limitations of the relevant conditions, this article only made a brief analysis. It is the inadequacies and also worthy of further in-depth study next place when the relevant conditions are ripe.