An Analysis Of Taxing Influence That Business Tax Is Converted To Vat On Banking Industry

Along with the fast development of our country's economy,our country's tax system is not adapt to the need of economic development,especially the levy of business tax.It is known to all that the business tax made a great contribution to our country's fiscal revenue in the specific historical stage.However,it has not adapted to the current economic situation of China's New Normal.The tax reform is imperative because that the critical double imposition restricted the development of many industries.The reform program has been implemented since January 1,2012 in Shanghai.Apart of the modern service industry and transportation are included in the first pilot.The reform of the tax change VAT has began in China.It is an important reform of the finance and taxation during the period of the 12 th five-year.The pilot has made great achievements.On the one hand,it is meaningful to optimize industry-wide VAT deduction chain.On the other hand,it has been urging industrial upgrading and product refinement through the external effect of tax.The last four industries(the finance,realty industry,construction business and consumer service)have also been included in the camp of the reform limits since May 1,2016.As we all know,these four industries are related to our daily life closely.The industrial structure is so complex that the reform is very difficult.The banking is the main research object of the article and the core of the financial market,which becomes a crux of reform because of the complex composition and highly systematic business.The paper is based on a large amount of literature.First of all,this paper expounds the achievements and problems of VAT pilot Reform at this stage.The first three chapters clarify the necessity and theoretical basis of the banking industry.After that I elaborate the overall framework of the paper.The fourth chapter is the main part of the paper,which is divided into two parts.The first part,I unscramble the policy about the banking industry.Then I analysis five joint-equity commercial banks.The second part is the study of a bank.I analysis the impact from various aspects,including the number of banking subjects and the impact of institutional mechanisms.What's more,the fifth chapter,I draw lessons from international advanced experience of developed countries to study and based on the policies of the pilot regions forecasts the influence of VAT reform on bank in tax burden,profit after tax and the accounting regulation.Finally I put forward with my suggestions to the next step of the reformation,including the theory of the policy advice and the banks' coping strategies.In conclusion,the reform program to replace the business tax with a value-added tax is the most important tax system reform in our country at present.In other words,it is hard to say the banks' tax burden can be effectively reduced at the present stage,even the tax can increase,the fundamental purpose of the tax reform is not to cut the tax burden,but to promote the chain of the whole industry.The banks must seize the opportunity to expedite development and meet the challenge to improve the ability for competition in the market.What's more,the bank should comprehensive various aspects strength to ensure that the reform run smoothly.