A Study On The Conduction Effect Of "Business Tax Replaced With VAT" To Enterprise Income Tax

The "business tax replaced with VAT" reform is a key measure to promote the supply-side structural reform and an important means of the reform of the fiscal and tax system in China,and it is of great significance to help the company continue to develop healthfully and protect our economy steadily.The "business tax replaced with VAT" has been completed in our country in 2016,however,because of the hysteretic nature of the impact of the policy and the complexity of corporate behavior,the effect of the reform will be more different because of the difference of the study time or the difference of the research object and the scope of the study,so the researchers have not yet reached a consensus on the study of related issues,what's more,the implementation of the policy is not once and for all,which will involve a series of follow-up,improvement and revision.In this view,the research on the "business tax replaced with VAT" can not be stopped,and the depth and breadth of the research need to be expanded and deepened,and only in this way can we evaluate the effect of the policy more comprehensively and objectively,and then provide a reliable decision basis for the related work in the later period.The reform of "business tax replaced with VAT" will directly affect the turnover tax of enterprises through the tax levy rates and the tax deductible,and then affect enterprises' pre tax profit and tax planning and production management and other decision-making behavior of enterprises,and ultimately affect the income tax of enterprises,which is the conduction effect.Because the income tax has a very high proportion in the corporate tax burden,business managers are very concerned about the impact of reform on the corporate income tax.Therefore,it is of great practical significance to study the transmission effect of "business tax replaced with VAT" on the corporate income tax.However,most of the current studies focus on the how the company's turnover tax is affected by the reform,and although some studies are about the effect of the reform on the company's income tax,they are just carried out on theoretical analysis,and only few researchers have carried out empirical test on the transmission effect of "Business Tax Replaced with VAT" on the corporate income tax.Based on this,this paper takes the data of Shanghai and Shenzhen A-share listed companies from 2011-2015 as a sample,combining theoretical analysis with empirical research,and using DID method to divide the data into stages.This paper explores theimpact of "business tax replaced with VAT" on the income tax burden of Shanghai,"8provinces" and national pilot companies.The study found that: 1.Compared with all the untested companies,this reform has increased the income tax burden of tested companies in Shanghai slightly,and has decreased the income tax burden of tested companies in the "8 provinces " and the whole country.2.Compared to the pilot industry of non pilot areas,for the transportation industry,this reform has increased the transport pilot company's income tax burden slightly in Shanghai,while has declined the transport pilot's income tax burden slightly in the "8 provinces";for the modern service industry,pilot's income tax burden has all declined in Shanghai and the "8 provinces".3.The test which distinguished the property rights of the companies shows that: compared with no pilot enterprises,for state-owned enterprises,the pilot enterprises income tax has had a significant decline;for non state-owned enterprises,the pilot enterprises income tax has declined with no significant.On the whole,the impact of the "business tax replaced with VAT" on the income tax of the pilot companies is basically consistent with the policy expectations.According to the above conclusion,this paper puts forward some suggestions from the two levels of government and enterprise,which can provide a reference for the further improvement of tax policy.