Research Enterprise Growth And Fair Tax

Capital theory is to keep out of their own needs,companies need to maintain theircapital,to prevent the impact of price changes on the operating conditions. According to "People’s Republic of China on Enterprise Income Tax Law" regulations and implementingrules," in the territory of People’s Republic of China,enterprises and other organizations toobtain income (hereinafter referred to as enterprises) as corporate income taxpayers subjectto corporate income tax in accordance with the provisions of this Law. Enterprises should payenterprise income tax in accordance with the profit." in recent years,the state has promulgateda series of measures to encourage enterprise development,but in recent years, continued toprice changes,the development of some enterprises seems to be caught in the crossfire. In thispaper, the theory of capital to maintain research base to explore the corporate tax changes ingrowth,the use of DuPont analysis of the financial condition of our traditional model ofconstruction enterprises carried out a simple analysis,concluded: currency instability in Chinatoday case,the corporate tax burden on business growth has played a big impact,so as togradually affect the company’s operating conditions.In this paper,the financial position of L as a case of listed companies,were analyzed tomaintain its financial capital and physical capital to maintain corporate tax changes under theconditions thereby affecting the business development situation. L is a company set up20years of private enterprises,shows the company ’s high-profit,tax contribution to the country ’sbig on its income statement,but the actual business cash flow is poor,there has been a shortageof funds,shrinking the size and other business issues;Why use of financial capital will belooking to keep L company profits,good income,but they’re inefficient,insufficient fundingand other operational difficulties.Through the use of DuPont analysis model L companyfinancial data were analyzed and compared,it was found: in an unstable economic context ofChina’s currency,if L Company measured at historical cost,underestimating the company’sassets,it is less about the reality of the costs and overstated profits,leading to artificially highcorporate profits,but in fact poor cash flow situation of enterprises.And for partially inflated profits tax levy imposed on business capital,making capital gains eroded enterprises.Overtime, companies continue to cash outflow of capital can not be maintained,bound to ashortage of funds,operating increasingly difficult phenomenon. Conversely, if L companyuses to keep the concept of physical capital,equivalent to the cost of using the existing assetsof the enterprise is measured,and therefore provides businesses with a true and reliableaccounting information,and promote the healthy development of enterprises.Thus revealing,inthe currency unstable economic backgrounds,with different ideas to the developmentprospects of the capital to keep the enterprise is different.