Research On The Effect Of "VAT Instead Of Business Tax" To SMEs

Small and Medium-sized Enterprises (SMEs) plays an important role in the development of the national economy, they have been an important part of the national economy in the countries all over the world. In 2013, the number of Small and Medium-sized Enterprises in our country accounted for over 99% of the national total number, created about 60% of the total GDP, contributed the jobs by 80% across the country, therefore, vigorously supporting the development of Small and Medium-sized Enterprises has been very important strategic significance.The purpose of this paper is mainly to research the effect of "VAT instead of Business Tax" to Small and Medium-sized Enterprises (SMEs), and how to perfect the policy to support the development of Small and Medium-sized Enterprises (SMEs). So, firstly, I elaborated the related literature and theory, defined the concept of Small and Medium-sized Enterprises, and analyzed the specific mechanism and the way of the influence of the "VAT instead of Business Tax" to Small and Medium-sized Enterprises, and then respectively by means of empirical and case studies to analyze the effect of tax burden and the independent innovation of "VAT instead of Business Tax" to Small and Medium-sized Enterprise, and also analyzed its other effects, including Small and Medium-sized Enterprises' tax structure, financial budget, cost and price, etc. Finally combining the results and problems in the process of analysis, such as the tax burden of some Small and Medium-sized Enterprises are not decreased while increased, etc., and putting forward some policy suggestions, including the advice of "VAT instead of Business Tax", such as adjusting the tax rate according to the tax burden balance to such Small and Medium-sized Enterprises whose tax were increased; with the electronic informatization of the tax business, timing to cancel the system of small-scale taxpayers; improving the system of tax collection and administration, adjusting the central and local tax sharing system, etc.; and also including other policy suggestions about the policy of "VAT instead of Business Tax" to support the development of Small and Medium-sized Enterprises, such as to establish and improve the laws of Small and Medium-sized Enterprises, to establish and perfect special management of administrative agencies and the financing and credit guarantee institutions for Small and Medium-sized Enterprises (SMEs), establishing reasonable preferential tax system and the fiscal subsidy system, etc...