Study On The Impacts And Countermeasures Of VAT Reform On Industrial Bank

According to the requirements made in REPORT ON THE WORK OF THE GOVERNMENT(2016)and the finance and taxation policy with NO 36 in 2016 which is issued jointly by the Ministry of Finance and State Administration of Taxation,From May 1st,2016 Tax reform in Business Tax replaced with Value-Added Tax(abbreviated as VAT Reforms to BT")come into force in the Banking Industry.This tax reform will have great influence on tax burden and profitability of commercial bank,also have profound changes in banking competitive environment.On the basis of CIB's financial statements data in 2015,with the influence of "VAT Reforms to BT",It is estimated that total profit will fall by 2.26%,including operating income will decrease by 4.89%by reason of the separation of price and tax with income.The proportion of deductible cost to total cost is only 15.64%,the cost just falls by 0.01%,including the tax burden will increase by 10.21%.In a word,total tax burden will increase to 5.18%.The effect of "VAT Reforms to BT" is not just the tax type's change,but more than total shock to the bank,but also the tremendous challenges to company operations.This article is using comparative study and field research,with the research target"How to deal with the transition proactively and reduce the tax burden reasonably",doing the comprehensive analysis on the effect of "VAT Reforms to BT" to financial management and marketing operation of the banking industry,so that putting forward coping strategy and summing up the three pieces of general experience to bank.From the perspective of finance,I analyzed deeply in how the bank taking the plan to reply"VAT Reforms to BT",such as actively planning in advance,actively respond to change,and to maximize the enterprise value.In process of analyzing,I focus on the angle of the output tax and input tax,and the comparison the assumption of case scene with detail data,analyzing how to reduce output tax through tax planning under the VAT system,in order to strive for maximum deductible input tax,and realize the profit maximization.