Empirical Study On Corporate Tax Burdens And Compliance Costs In Shandong Province

Enterprises are the engine to economic development. The economic competitiveness and comprehensive strength of a country or region are directly dependent on the competitiveness of enterprises there. With the implementation of several macro economic regulation measures since last year in our country, the negative influences have been relieved gradually. The macro economy of China is now stepping into recovery. Therefore, it is of significant necessity for Chinese government to devote to optimizing local investment environment and showing concern for the development of local enterprises in this period. In the sense, our government should reduce some unnecessary burdens for enterprises in order to make them more competitive in both internal and international competition and promote economic development finally.In China, with the effort of government at different levels to clear irregular administrative fees, tax burdens and compliance costs have become the major burdens for enterprises. Thus, the thesis conducted empirical study on corporate tax burdens and compliance costs in Shandong Province firstly, then analyzed the current situation comprehensively on the basis of empirical results and several factors which influenced corporate tax burdens and compliance costs, and finally proposed policy recommendations for provincial government to enhance competitiveness of enterprises, optimize investment envionment and achieve sustainable development of economy in Shandong Province.The thesis is divided into five chapters as follows:Chapter 1, Introduction. In this section,the background, methods, main viewpoints, innovations,some unsolved issues and systematic domestic and abroad literature review were included.Chapter 2, Theoretical Analysis of Corporate Tax Burdens and Compliance Costs. In theoretical analysis of corporate tax burdens section, the thesis rectified the TTR caculation method of World Bank and PricewaterhouseCoopers to make it fit Chinese taxation practice more. In theoretical analysis of tax compliance costs section, the thesis made systematic summaries of the connotation, composition and method for measurement of tax compliance costs.Chapter 3, Empirical Study on Corporate Tax Burdens and Compliance Costs in Shandong Province. As the kernel part, the section applied the methods mentioned above to the measurement of corporate tax burdens and compliance costs in Shandong Province. Empirical results indicated that the present situation of corporate tax burdens and compliance costs in Shandong Province took on a status of'Polarization', which meant that the burdens of large-size enterprises was low while mid and small-size enterprises and individual employees undertook too heavy burdens.Chapter 4, Study on the Current Situation of Corporate Tax Burdens and Compliance Costs in Shandong Province. On the basis of quantitative research, the section made horizontal comparisons between the caculation results of TTR, macro tax burden, tax compliance costs and ratio of tax compliance burdens in Shandong Province with relevant data both in nationwide and worldwide. Results indicated that large-size enterprises in Shandong Province were endowed with apparent tax advantages which enabled them to be competitive in both internal and international competitions while the burdens of mid and small-size enterprises and individual employees were so heavy that this conspicuous disadvantages caused much adverse influence to their development. It is evident that there are some defects in present institutions of taxation, social contribution, administrative fees and tax administration that aggravated the burdens of mid and small-size enterprises.Chapter 5, Policy Recommendations. Through quantitative and qualitive Research, the author proposed several practical measures to reduce corporate tax burdens and compliance costs in Shandong Province appropriately,of which reforming and improving Chinese taxation system, improving'Revenue-Sharing System'fiscal and taxation administration system, futher regularizing administrative fees and optimizing tax services were included.All these were aimed at optimizing investment environment, enhancing enterprise competitiveness and promoting economic development in Shandong Province.