Research On The Tax Burden Decreasing Effect Of "Replacing Business Tax With VAT" In China's Financial Industry

Starting from May 1,2016,China has fully implemented business tax reform to increase value-added tax.On the one hand,"replace business tax with value-added tax" has opened up the tax levy chain,improved the link that VAT can be deducted,and solved the problem of double taxation on enterprises with business tax.On the other hand,"replace business tax with value-added tax"also puts all industries in a taxation system,promotes the deepening of integration of the three industries,it is conducive to the optimization of production and management methods throughout the industry,and it is also conducive to improving the speed of China's economic restructuring.The financial industry plays an important role in regulating,responding and supervising the entire economic system.Its development has a direct bearing on the allocation of funds,the industrial structure,and the growth of the national economy in China,Therefore,it is beneficial to study changes in the tax burden following the reform of the taxation system in the financial industry.It also helps us face the challenges and opportunities brought about by the "replace business tax with value-added tax" and further improve the tax structure.The article mainly studies the impact of the overall "eplace business tax with value-added tax" on the turnover tax burden in the financial industry.At the same time,it presents the financial industry's follow-up policies and recommendations for "replace business tax with value-added tax" in the perspective of the government and the enterprise.Combining the principle of VAT general taxation with the input-output table,based on the current situation in China,the input-output method is closely integrated with China's taxation tax regulations.From the combination of macro-and micro-observations,the study of the financial industry has been conducted to make the study more comprehensive and the perspective of analysis has been covered more widely.From the macro perspective,this paper measures the overall tax burden changes in China's financial industry and compares the calculated critical tax rate with the actual tax rate.The results show that under the 6%VAT rate,the tax burden of China's financial industry has significantly decreased.From the microscopic point of view,this paper measures the tax burden changes of financial companies by selecting the latest annual report data of 16 listed banking companies in the monetary and financial industry.The results show that most companies'turnover tax burden have a significant decline,and the article also discusses the main factors affecting the change in the tax burden of corporate turnover taxes.Based on the analysis of these two aspects,the article puts forward that the government and the enterprise have proposed policies and recommendations in the future to respond to the "replace business tax with value-added tax"of the financial industry.For the government,it is necessary to follow the changes in taxation status and tax burdens of the overall and sub-sectoral industries of the financial industry,and to do a full-scale follow-up work of "replace business tax with value-added tax".For enterprises,it is necessary to respond to comprehensive "replace business tax with value-added tax" in their own operating characteristics and to make measures to prevent tax-related risks.