Analysis Of The Effects Of The Transformation From Business Tax To VAT On The Stock Price And Tax Burden Of Financial Industry

Business Tax conversion of VAT has been introduced in all industries nationwide since May 1,2016,with the financial sector being one of the last to be included in the pilot industry,as well as construction,real estate and living services,marking the beginning of the historical stage of VAT.One of the characteristics of VAT is to maintain tax neutrality,regardless of the number of circulation links,only to collect the amount of value added,to avoid the business tax era on the final product tax caused by repetitive drawbacks.As a result of the comprehensive collection of VAT on the financial industry,which is rare in the world,the complex financial industry has been concerned by scholars and industry.How to view and deal with the impact of "Value-Added Tax" on the financial industry has become a controversial topic.Finance is the core of modern economy,it is of great significance for China to improve the tax system reform and even promote the sustainable and healthy development of economy to do a study of the "replacing business tax with VAT" in the financial industry.This paper studies the event research method and case analysis method in the scope of the policy of "Value-Added Tax".Event study method shows that "Camp Change" is conducive to the development of the whole financial industry,and the same conclusion exists in the banking,securities and insurance industries of the subdivided industries,which indicates that investors are optimistic about the financial industry.By taking ICBC as the representative of the financial industry,the case analysis method separately analyzes the impact of VAT on ICBC from the three major revenue components of money deposit and loan,professional services and investment business.The conclusion shows that the tax burden of ICBC is aggravated by VAT in the short term.Among them,the impact on deposit and loan business is the greatest,followed by professional service business and investment business is the smallest.It further points out that the effect of tax reform should be viewed in the long run.Finally,the corresponding suggestions and measures are put forward from two levels of tax subject and subject of taxation respectively,which should provide reference for the whole industry to implement the policy of "reform and enhancement" in the future.As far as financial enterprises are concerned,it is necessary to strengthen the level of tax administration,increase the tax planning ability and management level.For the tax authorities,we should improve the existing VAT policy in the financial industry,implement the progressive VAT reform in the financial industry,improve the way of VAT invoice management,and increase the guidance to financial industry enterprises.The promotion and improvement of VAT is a gradual and orderly process,and it needs to deepen the reform in the aspects of optimizing the tax structure,tax base,collection and management methods,which emphasize on the opening up the VAT chain between financial enterprises and upstream and downstream affiliated enterprises.It is beneficial to reduce the turnover tax to a certain extent and the financing cost of enterprises and to enhance the vitality of firms for promoting the purpose of economic growth.Meanwhile,under the premise of ensuring tax neutrality,after the tax reform maturing,the VAT legislation should be completed as soon as possible in order to implement the principle of tax statutory.