A Study On The Construction Of Local Tax System After "Camp"

“Replacing business tax with VAT” is a unique Chinese characteristics economic terms, reflecting a hot issue in China’s tax system reform. “Replacing business tax with VAT” pilot reform started in Shanghai on January 1, 2012. On August 1, 2013, “Replacing business tax with VAT” was fully implemented across the country. 2016 the Government work report said full implementation of the replacing business tax with VAT, from May 1, to extend the pilot project to the construction industry, real estate, finance, service industries, new real estate and all enterprises included into the scope of deduction of VAT, ensuring tax reduction to all industries. As replacing business tax with VAT continues to promote, the main tax business tax in the local tax system will gradually die out. This brings great influence to local government revenues. Therefore, how to build and perfect the local tax system is of great significance. In this paper on the basis of research results, using a combination of qualitative and quantitative analysis, a combination of theoretical and empirical analysis research methods, further to study the issue of local tax system and to provide policy recommendations for the issue of the reconstruction of the local tax after the “Replacing business tax with VAT”.This paper consists of five parts. The first chapter is an introduction, first of all introduce the background and significance, then the existing "Replacing business tax with VAT" after the literature review on perfecting local tax system, followed by the research framework and methodology introduction and possible innovations and shortcomings. The second chapter introduces the basic theory of local tax system, the first section focuses on clarifying the concepts associated with the local tax. Sections II and III, respectively, to introduce the tax revenue system and the system of division of tax power, the fourth to fifth sections, respectively, introduced the division of tax power and division of tax collection and management. Chapter 3 introduces China’s local tax practice. The first section is an overview on tax sharing system reform, which forms the basic framework of China’s local tax system. The implementation of "Replacing business tax with VAT" is a great deal of impact and challenges to the local tax system. Therefore, in the time dimension on the development of the local tax system in China is divided into two phases to describe. Section II introduces the local tax system development during the period of the 1994 tax reform to the "Replacing business tax with VAT"(phase I). The third section introduces the local tax system during the period of "Replacing business tax with VAT" to today(phase II). The fourth section focuses on the existed problems of the current local tax system(of course, under the background of "Replacing business tax with VAT") and their causes. The fourth chapter presents suggestions in perfecting local tax system. First section presents the construction of the objectives, principles and ideas of the local tax system in the context of "Replacing business tax with VAT". Section II presents some advices about the division of tax power. Section III selects the consumption tax, resource tax, real estate tax to analyze their potential as a main tax in the local taxes. Fourth section analyses the transition plan and come to a conclusion. The fifth chapter is the conclusion.