| As a comprehensive business, logistics is a sunrise industry in the service sector, and known as the source of the third profit. It is China’s backbone force to expand domestic demand, solve the employment issues, adjust the economic structure, and improve the industrial structure; so it is hailed as the “stove†and “accelerator†of economic development. Due to the irrationality of assessment basis of traditional business tax, and its parallel with VAT, the contradiction of double taxation of China’s business tax is very sharp, and it also affects “tax neutrality†of the VAT to a certain extent. Under such a historical background, on January 1, 2012, our country started a trial to replace business tax with VAT in Shanghai, and put it into force across the country on August 1, 2013. Currently, the study of “replacing business tax with VAT†has become the focus of experts and scholars to discuss. Nevertheless, from the results of this trial, turnover tax burden generally increased after some logistics enterprises started to comply with the reform, and the operating efficiency tended to decline, which is obviously contrary to our country’s policy of structural tax reduction.Traditional analysis of the trial mainly focuses on the study of national logistics enterprises, while detail analysis of individual enterprise is relatively exile and inadequate. Therefore, this paper takes the form of case analysis, and selects a typical logistics enterprise TJG CO., LTD to give an analysis of the impact after the trial based on improved Du Pont financial analysis. The research draws three conclusions. Firstly, after the business tax reform to VAT, turnover tax burden rate and sales tax and extra charges declined, while enterprise income tax rate showed a significant rise. Secondly, net asset profits remained unchanged alone with the continuous increase of earnings per share, and the profitability mainly depended on the increase of net assets per share. Finally, there has been substantial growth in revenues, but gross interest rates and cash flow per share of loading and unloading operations, port services, towage work, agency services and tally business had a certain degree of decline.Through a further study on TJG CO., LTD, the writer can tell that the sharp reduction in business tax is the key factor for the reduction in sales tax and extra charges. Irregularities of accounting, decrease of pre-tax deductible expenses results in a significant rise of income tax rate. Large increase in cost of sales and salaries alone with limited turnover tax transfer capacity are important causes of the overall decline in gross margin this year. “Replacing business tax with VAT†has some positive effect on traditional business which are imposed VAT; and tax preference is the root cause of the company’s reduction in turnover tax in 2013. Besides, this paper makes a deep analysis on the reasons why the effects of turnover tax cuts is inconspicuous and enterprise income tax increases. Furthermore, the paper offers some practical policy recommendations for enterprises on how to reduce the corporate tax, decrease tax-related risks and improve profitability. |
