The Effect Of Camping On The Tax Burden Of Life Insurance Companies

With the announcement of the notice of comprehensively promoting the pilot of VAT instead of business tax,since May 1,2016,our country began to implement the policy of " replacing business tax with VAT ",and business tax has been withdrawn from the historical stage in China.The reform can be seen as the most important fiscal and tax reform since the implementation of the tax system reform since 1994.VAT is the first major tax in China.As a transfer tax,VAT is levied on the added value of the commodity production,circulation and services,or the added value of the goods.The unification of tax system after the reform can effectively link the deduction chain between the secondary industry and the tertiary industry,which is of great significance for eliminating duplicated taxation.The reform of the finance and insurance industry is a difficult and important point in the implementation of the policy.With the rapid development of our country's economy,our insurance industry is from small to large,in 2016 China's insurance industry gross premium income has reached 4 trillion and 400 billion,asset scale reached 15 trillion and 100 billion,has become a very important part of China's financial industry and the whole national economy.Replacing business tax with VAT extended to the financial insurance industry is conducive to the combination of financial services and the secondary industry and the tertiary industry,which eliminates double taxation and reduce the tax burden,For the life insurance industry,there are still many difficulties in the implementation of the VAT,the life insurance industry's business model and tax condition is different from other industries including financial industry such as banks.For example,while the insurance company pays VAT on the sales insurance,the major expenses of the insurance company such as claims cost,insurance agent labor costs,labor costs and insurance reserves.are unable to obtain special VAT invoice for deduction.In the case that the tax rate is increased from 5% of the business tax to 6% of the VAT,the lack of deduction can lead to the increase in tax burden after the reform.At home and abroad,the research on the VAT in the life insurance industry is not sufficient.More research is theoretical and lack of empirical analysis.At the same time,there is a big difference between the VAT policy in life insurance in China and other countries'.The VAT reform of our life insurance industry is rare sample in the world.Therefore,it is of great practical significance and theoretical value to study the change of the actual tax burden level of the life insurance company after the tax reform.This paper discusses the influence of the life insurance premium income,investment income tax burden after replacing business tax of VAT policy,and analyzes the life insurance company's VAT deduction and other influences on the tax burden of life insurance companies such as the transition period and taking the VAT as sales.Through the case study of China life insurance co.,LTD.,this paper studies the changes of the tax burden under the policy of replacing business tax with VAT.Through the comparison of tax base and tax rate,the paper avoid the difficulty of data acquisition of VAT by logical comparison.Finally,it is concluded that the tax burden level of China Life Insurance has been improved after the implementation of the policy of "replacing business tax with VAT",which provides a reference for further research.