A Study On The Impact Of "Camp" On The Taxation Of Transportation Enterprises

China’s economic has rapid developed since the reform and opening up, the status of the tertiary industry in the national economy increasingly prominent. Recently, China has gradually implemented tax reform, and has built the double taxation model which includes the income tax and business tax. particularly mentioned that the turnover tax also has built a two tax parallel mode that includes value-added tax and business tax. Obviously, the two tax parallel mode couldn’t match the step of economic development, and it causes a bad influence, which include of increasing the burden and making part of the VAT input tax can’t be deducted. Since of that, the two tax parallel mode can’t play a neutral effect in the tax system. November16,2011, Ministry of finance and the State Administration of Taxation jointly issued the "Business Tax Levy VAT Pilot Program" which was pilot implemented in Shanghai on November16,2011. According to the pilot implementation, VAT was priority levied in the modern service industry and transportation area which includes the air transport industry, and gradually extended to the whole country. The Program does be a significant milestone to China’s VAT reform.Due to the transportation industry and has a public demonstration, which determined that the industry should be the model role of tax reform. In additional, the transportation industry is one of the pillar industries in China’s economic development, and it also extensively involves the scope of existing VAT tax. So, in order to build a tax system which is suitable to the current economic system of China, it’s particularly important to place the transportation industry into the scope of VAT. Summing up, this paper chose China Eastern Airlines as a special case, analyzed the financial data with simulation, and summarized that the pilot reform of replacing turnover tax with VAT would have favorable impacts to the turnover tax, income tax and net profit of China Eastern airlines. And based on the simulation data, this paper analyzed the current and reformed influence, proposed corresponding suggestion which could enable the company making a maximize benefits during the tax reform.