Empirical Study On Influencing Factors Upon The Actual Tax Burden Of China's Listed Companies

The effective tax rate (ETRs) is different from the nominal tax rate and the implementation tax rate. It is a reflection of the level of actual tax. In the United States and other Western developed countries, ETRs have played an increasingly important role in the development of tax policy and tax laws. Enterprises as the main revenue provider of the state, its actual tax have become the most acute and most sensitive issue related to the people's livelihood.On the influencing factors of the actual tax burden, the paper recalled and concluded from the relevant domestic and international research literature, namely, to determine the level of the development of productive forces, economic structure, regional structure and preferential tax policies for listed companies, such four macro factors, and firm size, corporate investment and financing decision-making (including the three specific targets of asset-liability ratio, award on investment and capital intensity) and the equity structure of the micro-effects such three factors, which made the way for the assumption that the establishment of multiple regression models to explore the various factors on the nature and extent of the impact of the actual tax to listed companiesIn this paper, using panel data, selecting the Shanghai Stock Exchange and Shenzhen Stock Exchange A share public offering listing and trading of 52 listed companies in automotive manufacturing industry. in this article in order to issue A shares of the automotive manufacturing industry for 2004-2008 listed companies of all 5-year data for the overall, the use of descriptive statistics and multiple regression methods for their empirical research. In the empirical analysis, the author made qualitative and quantitative analysis, using analysis of a combination of descriptive statistical analysis and linear regression analysis. In this paper, statistical analysis and calculation mainly depend on use of statistical software SPSS13.0 and EXCEL to complete. In order to simplify the text of simple word description, some of the content is based on the chart form for description of visual analysis.Conclusion drawn from the descriptive statistical analysis on the sample panel data(2004-2008):(1) The overall analysis. From 2004 to 2008, the average of overall ETRs of listed companies for China's car manufacturing industry is 17.17%. From the perspective per year, the minimum average of ETRs is 13.64% in 2008, with a maximum of 21.14% in 2004. At the same time, the effective tax rate for the company of samples shows a year-on-year decline. For the listed companies which share an actual effective tax rate of above 25%, the proportion of samples of every year occupied by the listed companies dropped from 32.13 percent in 2004 to 16.22 percent in 2008. In addition, the statistical results also showed that: for each year, the actual income tax rate of more than half of the listed companies is below 20%. There is a big difference for the actual effective tax rate level among different firms.(2) Sub--regional analysis. In general, the actual tax rate of the special economic zones (Shanghai Pudong) is the lowest, followed by the actual tax rate in the western region. While the actual tax rate of the eastern and central regions is relatively high. The results are in line with China's active support of the special economic zones and the policies carried out to develop the economic of the western region. ETRs of the sample companies in the economic region, except the special economic zones (including the Shanghai Pudong), due to the impact of individual companies, in 2006 reached a peak. Then there is little trend in the change for the average ETRs. But in the eastern region, central and western regions, the average ETRs have shown a trend of more pronounced decline. As a matter of fact, the sample companies of more than 33% effective tax rate is reducing year by year, while the sample companies of less than 15% effective tax rate has increased year by year. The sample companies of greater than 33% effective tax rate take up a larger proportion in the eastern and central regions, but the sample of companies e of less than 15% actual rate take up a larger proportion in special economic zones (including the Shanghai Pudong) and the west.Through the above analysis, we can draw the following conclusions: effective tax rate of listed companies in automotive manufacturing industry's is well below 33% and 25% of the maximum statutory corporate income tax rate, indicating that China's car manufacturing industry companies enjoy greater tax benefits. Comparatively speaking, the actual tax rate of the eastern and central regions is relatively heavy, while the actual tax rate of special economic zones (including the Shanghai Pudong) and west is relatively light. Conclusions from regression analysis on panel data samples of the 2004-2008 as follows:(1) There was a significant negative correlation relationship between ETRs and the company's size. The larger the company's size, the stronger the use of the advantages of their own political lobbying, tax planning, such the ability to obtain tax benefits;(2) Asset-liability ratio reflects the financial leverage in decision-making, with the impact of ETRs in the level of 1% being significant negative correlation. It showed that there has been a capital structure of debt "tax shield" effect on ETRs.(3) Capital intensity reflects the company's investment decisions. In theory, the density of fixed assets should be negatively correlated with the company ETRs, but the results of the regression of this paper show that there is no significant relationship between the two below the level of 10%. in the promotion of enterprises in upgrading and increase in fixed assets investment, preferential tax policy has not played the desired effect, because the cost of tax through other means is lower than the cost for approval to the cost of tax departments and other departments, such as accelerated depreciation of fixed assets preferential tax policies, thus weakening the investment and other non-debt tax shield role.(4) ROA coefficient is positive, and in the level of 5% significantly correlated, indicating that: the stronger the company's profitability, the higher the effective income tax rate is, which is the enterprise as a result of increased profitability, the relatively fixed amount of tax deductible are unable to increase the percentage of current income and so on, so there will be a higher effective tax rate.(5) There is a certain negative correlation between Shareholding structure and the actual tax burden, but not significant. In other words, to a certain extent, in the background of majority state-owned shares holding the equity, business management can make use of the relationship with the government to obtain advantages of preferential taxation policies.(6) From a point of view regional effects, AREAW and the AREAS in the 10% level are negatively correlated with ETRs indicating that in fact the existence of special economic zones, and special tax concessions to the western development policy has indeed played a desired effect, so that the actual tax burden in the car manufacturing industry of listed companies of the west, and Special Economic Zone was significantly lower than other areas.(7) From the perspective of the year effect, compared with the base year 2004, the automobile manufacturing industry effective income tax rate of listed companies always keep decreasing trend, and this is consistent the results of the statistical analysis described in last section.(8) There was a significant positive correlation between the implementation tax rate of AExeTR and the actual tax burden. AExeTR reflects the tax benefits enjoyed by listed companies, to some extent, the implementation tax rate of AExeTR can be more objective in response to the level of the actual tax burden than the nominal tax rate.Empirical results show that the actual tax burden subject to a number of macro and micro factors, including firm size, capital structure, regional effects, as well as the impact of preferential tax policies which are more significant. On the one hand it is in line with the state's tax and industrial policies. On the other hand, it provides reference for the development, adjustment, improvement for the relevant tax rate policies. Among them, the results validate the use of the new enterprise income tax law achieved expected results to a certain extent, reducing the tax burden of the domestic enterprises. at present, the implementation of the policy of the new tax system of the "industrial-based preferences, regional preferences supplement" is still in transition stage, the actual tax burden in 2008 of the descriptive statistical results highlights the benefits and regional benefits industries co-exist, in addition to the fact that revitalization of the auto industry policy and planning were introduced, car manufacturers should seize the opportunity to become bigger and stronger, and enhance the capability of independent innovation to allow the formation of complementary enterprises, pleasing edge, and advantage in the further development of the crisis, to really revitalize China's auto industry and to take up the historical mission of the leading industry to accelerate the real economic recovery.