A Study On Influence On Business Performance Of Commercial Bank From The Tax Burden

Banking is the core and pillar of our country’s financial system. Its stability and development play an important role in the healthy operation of the entire national economy. In recent years, with the reform of domestic financial industry, especially the state-owned banks, tax has become an important factor of the commercial banks in the capital market. Though since the tax system reform in1994, the tax system of the banking ever underwent numerous adjustment, with the quickening of the step opening to the outside world of the banking, a great deal of negative effects of the current tax system begin to appear. Both state-owned banks and joint-stock banks face the heavy tax burden. It not only restricts the improvement of banks’profitability and operation efficiency, but also has side effect on the banks’development and competition ability. Therefore, it becomes more and more important to intensify the reform of tax system.There are7chapters in this paper. Chapter one, which is the part of introduction, explains the background of the selecting topic, the research purpose, significance, ideas, method, structure and innovations. Chapter two is about the present condition of research both at home and abroad. This chapter mainly reviews on the related literatures in two aspects:bank’s tax burden and operation efficiency. Chapter three is the analysis on the present situation of tax burden. This part firstly overviews the tax system and the evolution of Chinese banking history. Secondly, analyses the tax burden of the whole banking, state-owned banks and joint-stock banks by using the business tax index and corporate income tax index. Finally, finds the problems existing in the current tax system: the business tax rate is too high, tax calculation basis is unreasonable, the reserve against bad debt and pre-tax deduction is not reasonable, etc. Chapter four makes a empirical test on the correlation between tax burden and operation efficiency. At first, this part introduces the model, data resource and empirical method, and then, analyses the relationship between tax burden and operation efficiency with data from2002to2011. The fifth chapter is the foreign commercial bank tax policy experience, introduces the basic tax system of foreign commercial banks, and summarized our country can learn from experience. The sixth chapter for commercial banks to improve the tax system of our country reform measures, improve business performance of China’s commercial banks. The seventh chapter is the conclusion, summarizes the full text, put forward the prospects.The empirical results show that:during2002-2011, the Commercial Bank of our country tax burden level is higher, the level of profitability is generally low. The reform of commercial banks, to expand the scale of alone, spending cuts, increase income and other means cannot be good to improve their performance. Although these factors can affect the performance of commercial banks, but the effect is not obvious, the contrast, the tax burden impact on commercial banks is very obvious, commercial banks can reduce the tax burden to the reform of commercial banks. Therefore, at the critical moment of the development of China’s commercial banks, commercial banks must be through the reform of the tax system reform with the bank itself, to realize the smooth and healthy development of commercial banks. Finally, based on the conclusion of the study on the reference experience of foreign banks, combined with China’s actual situation, puts forward relevant policy suggestions.