The Effect Of Replacement Of Business Tax By Value-Added Tax Of The Telecommunication Industry And The Countermeasures And Suggestions

The replacement of business tax by value-added tax is an important part of the finance and taxation reform, and also an important measure in the implementation of structural tax reduction policy. It helps eliminating the double taxation of the business tax and the value-added tax,creates a beneficial taxing environment for promoting the development of modern service industry, optimizing of industrial structure, deepening the division of industrial labor. It produces a deep impact on accelerating the transformation of economic development mode and promoting strategic adjustment of the economic structure.The telecommunication industry plays an irreplaceable role in the economic development.As a leading and strategic industry foundation, it closely linked with people’s daily life. At the same time, it is as well one of the important composition department of China’s service industry, accounting for more than 20% of the proportion of output value with a rapid growth rate. Therefore, the telecommunication industry plays an important role in the service industry. The telecommunications industry provides informatics infrastructure and communication services for other industries, contacting closely with other industries, leading to significant influence on the upstream and downstream industry chain. According to the notice of taking the telecommunication industry into the project of the replacement of business tax by value-added tax, from June 1,2014, the telecommunications industry will be brought into the scope of the replacement of the business tax by the value-added tax. Replacing business tax with value-added tax will optimize the operation mode and the structural layout of telecommunication enterprises, develop and complete VAT deduction chain, improve the structure of the third industry, have an positive meaning whether in telecommunication industry or in the national economy.This thesis takes the telecommunication industry as the research scope. Firstly it introduces the theoretical basis and the related research achievements of the replacement of business tax by value-added tax. Secondly it introduces the concept, significance and effect of the replacement of business tax by value-added tax. The replacement expands the VAT deduction chain, speeds up the development of the third industry, has profound effects on the industrialstructureand economic development. Thirdly, it introduces the necessity and the policy of the tax replacement in the telecommunication industry area, the telecommunication industry is evolving quickly, the immutable and frozen tax policy is getting more and more inopportune to the situation and the trend of the industrial development. The tax replacement optimizes the industrial structure and the operation mode of the telecommunication industry, accelerates the transformation and upgrading. At last, the thesis analyses the influence caused by the tax replacement of the telecommunication industry, and puts forward some pertinent suggestions. Three large operators account for most of the tax of telecom industry, being the representatives of the industry, so the thesis takes the three large operators as the main research object. Analyses the influence of the industrial tax replacement based on the reports and statements of the big three. Referring to the current reform situation and the developing trend, the thesis puts forward some improving measures and suggestions, aiming at changing the operation mode, improving the financial management and accelerating the upgrading. The advisements will make the big three take advantage of the tax reform policy more reasonably and effectively, and make them conform to the rapid development of telecom industry tightly and rationally. On the other hand, the thesis analyses the effect of the tax replacement of the telecom industry to the local revenue and the government department, then throw out proposals on the aspects of improving relative policy and execution efficiency and local revenue, which will make the reform promoted more successfully and achieve better effects.