Research On The Effects Of Value-added Tax Transformation To The Financial Performance In Chongqing

China began to practice experimental reforming on VAT transformation,allowing companies to outsourcing purchases tax amount of fixed assets are deductedsince2009. The purpose is to reduce the tax burden on enterprises, stimulate theenterprise investment enthusiasm, and promote industrial structure adjustment andoptimization. Chongqing is the economic center of the Yangtze River shelter-forestregion and the modern manufacturing base, the second industry occupies a largeproportion in the overall economy. The transformation of Value-added Tax is boundto have various significant impacts on the enterprises of Chongqing. The article putthe importance on the study about the transformation of Value-added Tax influence onthe financial performance of enterprises in Chongqing through the theoretical analysisand empirical research.Firstly, use the theory of enterprise performance theory to analysis the effects ofValue-added Tax transformation to the financial performance in Chongqingqualitatively. On the basis of the study, then selected74samples of companiescollected the related financial data to analysis the annual and divisions’ changes ofdebt paying ability, profitability, operation ability and development ability ofcompanies in Chongqing. The result shows that the short-term debt paying ability,profitability and development ability of the samples companies get a certain level ofascension, but the Value-added Tax transformation didn’t promote the long-term debtpaying ability and operation ability.Secondly, build the VAT effect model to analysis the effect on enterprisefinancial performance. The result shows that the Value-added Tax transformationpolicy has a significant role in promoting the development of the financialperformance. Besides, the Value-added Tax transformation is much grater comparingwith the net income, enterprise scale and fixes assets accounting in total assets in theinfluence on the enterprise financial performance. The enterprise scale and fixedassets proportion has a significant positive correlation with corporate financialperformance; the effects of the asset ratio on corporate financial performance areincreasing steadily after the Value-added Tax transformation.Finally, on the basis of the empirical research, put forward to the suggestions forthe improvement of the enterprise’s financial performance after VAT. Enterprise should strengthen the internal management reasonably, use new and high technologyto promote the transformation of manufacturing industry and make full use of theValue-added Tax transformation policy.