Research On The Impacts Of Tax Policies On The Business Performance Of Communication Equipment Manufacturing Industry

The communication equipment manufacturing industry is a leading industry of Chinese national economy that plays the core role in high-tech manufacturing industry.In October 2019,PTEXPO was held in Beijing,and the theme of "Integrating 5G " and " Smart World " provided new highlights and possibilities for the future of the communication equipment manufacturing industry.Taxation,as one of the main channels for the outflow of economic benefits,is bound to have an impact on the development of enterprises.Therefore,this paper studies the business performance of the communication equipment manufacturing industry from the perspective of taxation.This paper is mainly divided into five parts:The first part is the introduction.Firstly,this chapter clarifies the background and significance of the research.Secondly,it summarizes the research results of tax policy,tax burden and the relationship between tax burden and business performance.Finally,it explains the research contents and methods as well as innovations and deficiencies.The second part is the related theoretical analysis.Above all,this chapter defines the caliber of tax burden and business performance.Then it clarifies the mechanism by which taxation affects the business performance of the communication equipment manufacturing industry.Firstly,based on Marshall’s theory of partial equilibrium and general equilibrium,it analyzes the impact of turnover tax on market equilibrium and producer choices.Secondly,according to the stakeholder theory and the MM theory of corporate taxation,it analyzes the impact of income tax on the economic behaviors of all aspects and business management.The third part describes the current situation of Chinese communication equipment manufacturing industry from the perspective of industry development,tax policy and business performance.At the same time,it is compared with other subsectors of the computer,communication and other electronic equipment manufacturing industry.This chapter draws the following conclusions:(1)Chinese communication equipment manufacturing industry has formed a relatively complete industrial system,which has a greater contribution to the industry than other subsectors.(2)The existing tax incentives are mainly targeted at corporate income tax and lack of industry pertinence.Compared with other subsectors,the tax burden of the communication equipment manufacturing industry is still in a high position,and turnover tax is relatively higher than income tax.(3)In recent years,the business performance of Chinese communication equipment manufacturing industry has improved,occupying a leading position in the industry.But the return on assets between different enterprises varies greatly,and it still needs to support backward companies to make up for their shortcomings.The fourth part is the empirical analysis of the relationship between tax burden and business performance of the communication equipment manufacturing industry.This chapter first conducts an empirical design,introduces the selection of sample data and variable indicators,assumptions and models.And then it conducts normative and empirical analysis.The conclusions of this chapter are as follows:(1)For the communication equipment manufacturing enterprises,the overall tax burden,turnover tax burden and income tax burden are all negatively related to business performance.(2)The impact of turnover tax burden on business performance is less than income tax burden.This is mainly because turnover tax is an indirect tax that can be passed on to others,while income tax as a direct tax has a relatively direct effect on corporate profits,so the impact of income tax burden on business performance is more obvious.The fifth part is the policy recommendations.This chapter combines policy review,descriptive statistics and empirical analysis conclusions,puts forward suggestions from the perspective of taxation and non-taxation.At the taxation level:the government should deepen the tax reduction reform.Firstly,it is necessary to promote the simplification of the value-added tax rate,and improve the construction of the tax refund system and the pertinence of the preferential policies.The second is to reduce the corporate income tax rate appropriately,and formulate more flexible tax incentives in terms of high-tech enterprise recognition standards,loss compensation and pre-tax deduction.Enterprises should actively use preferential policies to do a good job of taxation planning,in order to reduce tax burden.At the non-taxation level: The government should continue to clean up and reduce extratax charges,especially to learn from the advanced international experience to implement the reform of social security,while improving the existing financial subsidy policies.Enterprises should make up for shortcomings in supply chain management,professional integration and so on,and do well in the transformation and upgrading of production and operation.