A Research Of The Issues On VAT And Business Tax Reform In China

During the next National Twelfth Five-Year Plan period, the enterprise of taxation is encountering new development environment. China will speed up the transformation of mode of economic development, improvement of taxation system beneficial to scientific development and implementation of the function of taxation.As a result, it is pressing for the present system of value-added tax and business tax to be optimized, accordingly effectively promote the upgrading of industrial structure and development of service industry. From1st January,2012, Shanghai has developed "value-added optimizing" reform pilot in the field of transportation and part of modern service industries. From1st September to the end of the year, the range of pilot is extended batches from Shanghai to the following eight provinces (municipalities),Beijing, Tianjin, Jiangsu, Zhejiang(Ningbo included), Anhui, Fujian(Xiamen included), Hubei, Guangdong(Shenzhen included).This thesis, according to the research on current value-added and business system, analyses the problem of two coexisting taxation system from aspects of double taxation, disadvantageous industry structure adjustment and national and local tax caused by current tax system. On the basis of experience from two taxation reform and developed countries’legal system of revenue and collection and management system, China will resolve the two taxation reform, actively explore the strategy to the possible problem in the process of positive reformation, and find the solution which makes a smooth reform and achieves an expected effect, from the aspects of revenue legislation,"Business Tax to VAT", tax rate setting and management of tax decrease and exemption. Thereby, China comes up with the advice that they should reasonably distribute the revenue authority between the central authorities and local authorities, actively improve local taxation system, draw a clear line of income distribution between central and local authorizes, and deeply develop the levy and management of tax administration and institution reform.Meanwhile, they should pay attention to advance step by step in the process of reform, and develop the reform pilot, thus promoting the development of taxation reform stably and effectively.