Tax Policy Supports The Development Of Modern Service Industry

The development of modern service industry can change our industrial structure from the industrial-based economy to a service economy, which could absorb more labor, to avoid environmental pollution and improve international status and competitiveness. Tax policy is the main way of a government macro-control and ability to motivate the development of modern service industry, to guide its development, tax policy is inseparable. With the 2013 Camp changed to increase spread across the country, the tax reform has permeated all sectors of modern service industry. The improving of China’s modern service industry tax policy on the development of modern service industry is important.We analyses the departure of the tax burden on the modern service industry and the impact of taxation on the growth of the modern service industry from the perspective of the camp changed, then on this basis we discuss and propose tax policy recommendations to support the development of modern service industry.The main contents of this paper include four parts. The first part is the tax to promote the development of the theoretical basis of modern research services. This paper describes the basic theory from incentives and tax aspects. The second part is through the country from 1978 to 2013 changes in the three industries, we can fully understand the development process of China’s modern service industry. Describe the state of development of modern service industry through macroeconomic indicators can find the problems in the modern service industry. We also analysis the tax burden on the modern service industry around the camp changed from a tax policy perspective and empirical analysis using panel data analysis to establish the impact of China’s tax revenue growth of modern service industry between 2004 and 2013, we find the problems in tax policy of China’s modern service industry. The third part is that we summarize the tax policies of the US, South Korea, India, three typical state of modern service industry, these help us made policy recommendations for reference. The fourth part is to propose tax policy recommendations to support the development of modern service industry.Logical structure of this paper is based on the theory, empirical analysis and international reference. The main point of this paper is(1) the development of modern service industry at low level, the support of tax policy which could develop modern service industry vigorously is needed.(2) Current tax policy problems restricting the development, especially the camp changed to increase the effect by the tax rate, the combined effect may be deductible items, operating income and other factors.(3) China should continue to expand the camp changed to increase the range and reduce the VAT rate, and expand the range of value-added tax deductible; we should change the modern service industry tax incentives for enterprise-based projects and regional deals establish tax incentives management system; we should improve tax collection and management system, the implementation of electronic invoice management to avoid the additional burden of modern service industry.