The Impact Of The Substituting The Value-added Tax For Business Tax Reform On The Trust Industry

Since May 1,2016,China has implemented the substituting the value-added tax for business tax reform in the whole industry,which indicates that the business tax has been completely replaced by VAT.The financial industry has received extensive attention due to its industry specificity.The trust industry is an important sub-sector in the financial industry,but most scholars mainly focus on sub-sectors such as banking and insurance.Less scholars have systematically studied and analyzed the impact of the substituting the valueadded tax for business tax reform on the trust industry.This paper aims to analyze the impact of the tax reform on the operating performance of 68 trust companies.At first this paper introduces the significance and relevant background of the research,and then reviews the domestic and international research of the impact of the substituting the value-added tax for business tax reform,interprets the related theory and analysis the content of the policy of the impact of the substituting the value-added tax for business tax reform and the transmission mechanism of policy influence.Finally,using the method of regression analysis to conduct empirical analysis.The main innovation of this paper is not only focusing on the trust company but innovatively focusing on two important parts in the trust industry,trust companies and investors.Through two levels,this paper systematically analyze the impact of the substituting the value-added tax for business tax reform on the trust industry,not only study the impact on the self-operated business,but also the policy impact of the trust business.The research finds that the impact of the substituting the value-added tax for business tax reform policy has a relatively negative impact on the operating performance of the trust company's self-operated business.But the difference is that the impact on the business performance of the trust company's trust business is not significant.Finally,the paper proposes corresponding policy recommendations based on the research conclusions.