Research On The Financial Influence Of The "Reform Of Replacing Business Tax With Vat" On Leasing Industry

In recent years, the policy gives support to the finance leases, August 26, 2015, in a State Council executive meeting, Premier Li Keqiang clearly stated that accelerate the development of financial leasing and financial leasing is an important measure to deepen financial reform, and help alleviate the financing difficulties financing expensive, drive business equipment investment, promote industrial upgrading, and gives four guidelines that.decentralization, restructuring, business innovation, policy support.Rental agencies is a new kind of non-bank credit institutions throughout the financial system,that is established for the Chinese financial industry into a competitive mechanism, so that the production enterprises in the technological transformation of the way have a new option. Thus, the development of the leasing industry is not only to break the shackles of traditional credit and financial system, and to reform the financial system has injected new vitality."Replacing business tax with value-added tax(VAT)" plays an important role in alleviating the tax burden of enterprises, stimulating economic growth.From January 1, 2012, Shanghai perform its transportation and some modern service industry business tax reform, which was included in the scope of VAT, which opened China "Replacing business tax with value-added tax(VAT) " tax reform prelude. "Replacing business tax with value-added tax(VAT) " is to eliminate double taxation of tax, which is an significant step national implementation of structural tax cuts. From August 1, 2013,the part of modern transportation services launched a "Replacing business tax with value-added tax(VAT) " pilot program implemented in the whole country. The leaseback business of leasing industry can not deducted from the sales due to the principal portion of the lease business,has entered a state of stagnation. Of course, the following pace of reform is still moving forward.So what financial impact did "Replacing business tax with value-added tax(VAT)" bring to leasing companies exactly, how to make full use of the reform of the leasing company to enhance their competitiveness,reduce the adverse effects brought about by reform,these issues have become the focus of the leasing industry.It can be seen through the necessity of "Replacing business tax with VAT and the review of the literature on the impact of the "Replacing business tax with value-added tax(VAT) " on the leasing industry. "Replacing business tax with value-added tax(VAT)" effect of that financial leasing enterprises is twofold. "Movable property lease" reform is about to enter the third year and tax revenues are actually decreasing.,this article starts from the policy,taking real enterprise as an example,through the method of caseanalysis and comparative analysis, to launche the qualitative and quantitative analysis on The financial impact of "Replacing business tax with value-added tax(VAT) " to the Finance Leasing Company.Reveal the impact of reform on tax burden, net profit and cash flow of Finance Leasing Company,And analyze the new problems "Replacing business tax with value-added tax(VAT) " brings to the leasing company,put forward the countermeasures to reduce the adverse impact of reform.Combined with case analysis, the following conclusions can be drawn: "Replacing business tax with value-added tax(VAT) " opened the VAT deduction chain between supplier, lessor and lessee,Improved the competitiveness of the industry. After replacing business tax with VAT the tax burden of enterprises is reduced, and the net profit is increased and the cash flow of business activities and investment activities will increase.