Study On The Taxation Reform Of Banking Industry In China

The bank is the important component of the national economy, and the bank tax system scientific or not influences the management performance of the banking directly. The tax system reform of the banking will influence the development of the whole national economy. Though since the tax system reform in 1994, the tax system of the banking ever underwent numerous adjustments, with the quickening of the step opening to the outside world of the banking, a great deal of negative effects of the current tax system begins to appear. Especially after joining in WTO, China's domestic banks are facing more and more competitive pressures. Under these circumstances, China's existing taxation system and policies of banking industry haven't met with the need of current situation. To keep banking industry healthy, orderly and progressing, China should base on the realistic situation, reform the old taxation system of banking industry and create a fair, impartial, and competitive environment for our commercial banks.This paper ,proceeding from this background and current situation, the author introduces the current situation of tax system of China's banking industry, and describes the main problems. Then the author analyzes influencing of business tax and income tax on commercial banking management by putting the theoretical model, and the result shows that the business tax affects the optimal quantity loan of commercial banks, and distorts behavior of banks, but the income tax do not. Also, the author draws lessons and experiences from the foreign usages, and bases on china's current conditions and commercial banks' realistic situations, and puts forward corresponding policies and recommendations to improve China's taxation system of banking industry.In this paper, first, the author examines basic theoretical analysis of china' bank system reform, and describes basis that the government promotes development of banking. At the same time, the author analyzes advantages and disadvantages between tax policy and other policies comparatively, and studies the influencing of business tax and income tax on commercial banking management by putting the theoretical model. Second, the author introduces the development, basic situation and characteristic of the turnover tax, income tax and other taxes of the Banking, and has a concrete analysis of current tax system of the banking, then finds out the main problems of our tax system, mainly lying in the heaving tax burden, the unified tax and the coarse design of the tax system. Third, with an adoption of comparative analytic approach, author briefly introduces foreign banking basic situation of tax system, and describes their characteristics. Last, the author analyzes the necessity and feasibility of the tax system reform of the bank, proposing the basic principle and thinking of the reform of the tax system. Directing against the question that how toperfect tax system of Bank of China, the author puts forward the concrete suggestions.