Corporate Business Tax Levy VAT Pilot Case Of Corporate Tax Cuts

To accelerate economic transformation and upgrading, promote the developmentof modern service industry, to achieve the "Eleventh Five-Year" and the "second five "tax cuts mentioned objectives, the Ministry of Finance and the State Administration ofTaxation issued a business tax levy VAT reform pilot program the first round of the pilotincludes six modern service industry and transportation, from1January2012onwards,Shanghai took the lead in the transportation industry and part of the modern serviceindustry to carry out the business tax reform. Up to now the pilot areas has beenextended to Beijing, Tianjin, Jiangsu, Anhui, Zhejiang (including Ningbo), Fujian(including Xiamen City), Hubei, Guangdong Province (including Shenzhen).Ministry of Finance and State Administration of Taxation for VAT reform at thebeginning of business tax for the purpose of tax cuts, after a year of the pilot, to reduceby2012to achieve40billion corporate tax, corporate tax situation pilot areas,95%ofenterprises and the tax burden did not produce changes in about5%of the corporate taxburden has increased. Particularly in the transport sector which increased tax burdenmore serious reaction. Why transport pilot in the reform camp changed to increase thetax burden will be increasing rather than reducing what is going on? Is the number ofpilot areas too? Pilot time is too short? Update proportion is too low or fixed assets?Or some other reason?This article was selected transport pilot areas listed companies as samples, inaccordance with its announced mid-year report and annual basis, the relevant data werecollated and made a calculation of each sample before and after the actual corporate taxreform data, and By transport pilot camp changed to increase the effectiveness of taxcuts obvious reasons put forward several hypotheses, through Excel and SPSS20.0 software on the empirical data of each sample analysis of samples, and thus to explorethe reasons why.The empirical results show that the transportation business tax levy VAT pilot theeffectiveness of tax cuts is not obvious because of the following aspects: the smallnumber of pilot enterprises, pilot enterprises and shorter, while the pilot enterprisescurrent taxable revenue income scale and current updates of fixed assets significantlyaffect the effectiveness of the pilot enterprises tax cuts.Based on the transportation battalion changed to increase the pilot process taxsituation influencing factors, which have aimed at improving transport operatorschanged to increase corporate tax effects of the pilot process a few suggestions:Increase the number of pilot areas, to extend the pilot enterprise pilot time, reducing thecurrent pilot enterprises VAT output tax rate, increase the current fixed assets updates.