The Financial Impact Of Tax Reduction Policies On Private Enterprises

In recent years,the domestic and international economic situation is complicated,and China’s economic growth rate has also entered a slow growth stage.In order to reduce the pressure of domestic economic operation and ensure the steady growth of the national economy,China has increased the tax reduction policy.In 2019,the government will continue to carry out a new round of tax reduction policies,which will continuously reduce the pressure and inject vitality into enterprises.For enterprises,the implementation effect of tax reduction policies will be reflected through financial performance.Therefore,this paper will focus on the impact of tax reduction policies on financial performance of enterprises.Firstly,this paper analyzes the production and management status of BY enterprise.Then,this paper focuses on the analysis of the impact of tax reduction policy on the financial performance of BY enterprise.On the one hand,the financial index analysis method is used to analyze the change of the financial performance of BY enterprise:the solvency,profitability,operating ability and development ability.On the other hand,EVA model is used to analyze the financial performance of BY enterprise,and the research finds that the economic added value and net profit of BY enterprise have increased after a new round of tax reduction policy,but there are potential financial risks.Based on the above research results,the implementation of the tax reduction policy has greatly reduced the tax burden of enterprises,reduced the material cost and labor cost of enterprises,and finally increased the profits of enterprises from the perspective of production and operation.At the level of financial performance,the financial indicators reflecting the debt paying,profit making,operation and development ability of enterprises are generally improved.The implementation of tax reduction policy has promoted the financial performance level of BY enterprise,played an advantageous role in the market performance of BY enterprise,and provided a guarantee for the high-quality development of enterprises.Finally,the optimization strategy of tax reduction policy is proposed from two perspectives.At the level of tax authorities,it is necessary to improve the structure of the tax system and strengthen the publicity and guiding role.From the level of taxpayers,enterprises need to improve the professional quality of financial and tax personnel,carry out tax planning in a scientific and reasonable manner,formulate long-term development strategies,actively promote the transformation and upgrading of industrial structure and enterprise products,and promote the high-quality development of enterprises.