Impact Of "Business Tax Reform To VAT" On Tax Burden And Business Operation Of China’s Insurance Industry

With the promulgation of "New National Ten",the development of insurance industry has stepped into a new stage and become one of the three pillar industries in China’s financial industry.Insurance industry plays an extremely important role in the economic development.It is necessary to have a good policy environment to maintain the healthy development of the insurance industry,among which,the tax policy is a very important part.In insurance industry,carry out business tax in quite long period of time,because business tax has the drawback that collects repeatedly,so insurance company is bearing a higher burden Tax cost.Moreover,the chain of VAT also broke in the insurance industry.This mode of taxation violates the principle of tax neutrality and seriously restricts the development of the insurance industry。2016,The circular issued jointly by the Ministry of Finance and the General Administration of State Taxation on the time point when the business tax will be changed into value-added tax marks the comprehensive introduction of value-added tax by the financial and insurance industry.The introduction of "Business Tax Reform to VAT " will certainly affect the Insurance Industry Business Management and tax burden have an impact on the development of the insurance industry.As the " business Tax Reform to VAT " of the insurance industry has just been implemented,the value added tax(VAT)is now taxing the insurance industry.The research of VAT and the analysis of the influence of VAT on the enterprise from the point of view of business operation There is less relevant information about This article regards this as the breakthrough point,studies "Business Tax Reform to VAT "To the insurance industry Tax burden and business operation,The impact of the use of theory and Empirical evidence After the business tax is changed into VAT,the value added tax(VAT)rate is analyzed.Insurance industry The impact of tax burden and the difference Analysis of the impact of tax burden through examples And through the product pricing,the marketing mode,the claim way three aspects analysis " Business Tax Reform to VAT " to the insurance profession business operation influence。This paper is divided into five chapters.The first chapter is a general introduction,mainly introduces the research background and significance,then through the domestic and foreign literature reading,introduces in the tax calculation foundation,the collection pattern,the economic effect,the tax reduction effect and so on aspect research achievement,finally narrates the research thought of this article.Methods and innovations and deficiencies;The second chapter briefly introduces the background of the implementation of the insurance industry,focusing on the theoretical basis of the tax system,mainly involving the tax system optimization theory,neutral theory and the macro-control after tax.The third chapter is the focus of this paper,mainly introduces the impact of VAT on the tax burden of the insurance industry.First,it introduces the current situation of the insurance industry and the implementation of the reform for a period of time.Secondly,the impact of VAT rate on the tax burden of insurance industry is calculated by calculating the equilibrium point of tax burden under the business tax and VAT.Finally,the provincial branch of A Life Insurance Company 2016-2018.The actual data,to analyze the impact of the tax burden of insurance companies.The fourth chapter introduces the influence of "Business Tax Reform to VAT" on the business operation of insurance companies,mainly through the three aspects of product price and organization,the choice of sales channel and the change of claim way,and analyzes the influence brought by VAT.The last chapter of this paper is the conclusion and suggestion.Through the analysis of the first four chapters,it is concluded that the influence of VAT on the insurance industry is remarkable.In the actual operation situation,combined with the example of A Company.As insurance companies sell a large number of duty-free products,most of the income tax has to be transferred out;Moreover,a large number of life insurance companies pay compensation expenses to individuals,unable to obtain special invoices and other factors.After "Business Tax Reform to VAT ",the tax burden of insurance companies,especially personal insurance companies,is increased,but the increase is not large.In view of the rise of tax burden,this paper finally puts forward some suggestions from two aspects:policy and enterprise management.The innovation of this paper is to measure the change of tax burden of VAT,analyze the reasons of the change of tax burden and put forward targeted suggestions through a large number of empirical data.Finally,we hope to implement the tax reduction and reduce the tax cost of enterprises.For the enterprise to create greater profit space.