Empirical Study On Determinants Of Income Tax Burden Of Manufacturing Enterprise

At present, the manufacturing industry in China has created more than half ofGDP. The manufacturing output accounted for80%of the entire industry. Comparedwith other industries, manufacturing is closer to people’s lives. It has occupied theleading status in the development of China economic. In recent years, manufacturingindustry has been developing rapidly in our country and became a stronginternational competitiveness of industry. Manufacturing enterprises is not only themainstay of the national economy, but also a major contributor to the state’s taxrevenue.Based on the tax burden shifting and the tax incidence, the enterprise incometax burden was often used to represent the actual tax burden. The new EnterpriseIncome Tax Law which carried out in2008has played a role in the amount of taxand the fairness of tax burden. In the past two years, the range of structural taxreduction pilot has been expanded which had a major impact on enterprise incometax burden. Resrarching on income tax burden and its influencing factors could notonly offer effective thoughts to tax reform, but also help guide the optimization andupgrading of industrial structure in our country. Based on this, this paper selectedthe manufacturing industry to study the corporate income tax burden and its factors.Based on the existing related literature and research, this paper made a furthersum about the theory of corporate income tax burden and analyzed the determinantsof corporate income tax burden which maily incuded tax factors and non-taxfactors. Finally this article selected A-share listed manufacturing company from2009to2011in Shanghai and Shenzhen stock exchange as a research object, andestablished the multiple regression model on the influencing factors of effective taxrate for empirical research.According to the analysis on research data in this paper, we found that thelevel of manufacturing ETR was lower than the legal income tax rate whichindicated that some of the manufacturing companies enjoyed tax preference.Through classification study in the manufacturing, we observed that in the fourtypes of listed companies, low-technology industries had the highest ETR, and thehigh-tech industries owned the lowest. Using the multiple regression analysis, wecame to the conclusion: enterprise executive tax rate, company size, fixed assetsratio and the largest shareholder equity ratio showed a significant positivecorrelation with ETR, but VATR, Book-tax difference, and ROE showed asignificantly negative correlation with ETR. Through detailed analysis of empiricalresults, this paper considered the government and related departments should further improve the corporate income tax policy, accelerate the implementation of green tax,carry out the change from Business Tax to Value-Added Tax entriely and strengthentax supervision. For manufacturing enterprises, this paper suggested that they shouldadjust the industrial structure, meet with their own characteristics and tax incentivesto make reasonable avoidance measures.