A Study On The Finacial Impact Of “BT To VAT” On The Commercial Banks

As a representative of the modern service financial industry,commercial banks,in the connection between the supply side and the demand side has a central role.In recent years,the net profit growth of the banking industry has been declining.From 2012 to 2015,the net profit of listed banks increased by 18.96%,14.48%,9.65% and 2,43% respectively,while the non-performing loans of commercial banks 0.96% to 1.67 by 2015,it is clear that the bank is no longer the so-called "lying to make money" place.March 24,2016,SAT(the State Administration of Taxation)and MF(the Ministry of Finance)issued an notice about implementing the "VAT to BT" fully" and other four annex jointly,stating that from May 1,2016 onwards,the financial industry would be included into the "VAT to BT" system.Since than,the nine major tax items of Chinese business tax have been fully included into the “VAT to BT” pilot,basically realizing the comprehensive coverage of the Business Tax,and Commercial Banks apply for the tax rate of 6%.As an important part of the national economy,this tax reform will bring new challenges to commercial banks,and in the course of its implementation will also encounter some problems in the operation.Although the goal of this pilot policy is to "ensure that a decrease of the tax burden of all industries ",but the financial industry sub-industry a wide range of business,accounting is also more complex,the industry as a major increase difficulty.The implementation of the increase in the need for pilot and various patch policy run-in,the advantages of the value-added tax system may be difficult to reflect.Based on the previous research,this paper utilize the method of combining theory with empirical analysis to verify the preliminary influence of the expansion of "VAT to BT".First of all,this paper introduces the impact of the pilot on commercial banks' tax burden,investment in fixed assets and operating performance from the theory aspect.Secondly,16 listed commercial banks will be selected as samples,to study the influence on the tax burden and the operating performance of commercial bank by using the method of regression analysis,significance test and descriptive statistics.Finally,this paper indicatesthat,after the pilot of “VAT to BT”,the Turnover Tax burden of commercial bank is significantly increased,and the income tax burden is significantly reduced,and the operating results in a short-term is improved obviously.At last,some corresponding recommendations will be proposed in all aspects of the impact to promote the proceeding smooth of the pilot and flourish the growth of commercial banks.