The Analysis On Effect Of "Replacement Of Business Tax With Value-added Tax" Reformation In China On Enterprise Finance

With the development of our economy and the deepening of the reform and openingup, China’s tax system can not keep up with the pace of economic development, especiallythe double taxation of the business tax, severely restricts the development of enterprise,especially the development of the tertiary industry. January1,2012,“VAT reformation”took the lead in Shanghai as the pilot, raised the new round of tax system in our countryreformation tide; In August2013, a nationwide implementation took place; On January1,2014, the railway transport and postal services has also been included in the “VATreformation”. at this point, the entire transportation industry have all been incorporated intothe scope of reform. In common operations, the effect of the burden on tax can not beignored, the influence of the “VAT reformation”, the purpose is to reduce the tax burden onenterprises, save the funds for the enterprise, optimize enterprise financial condition. Sothe analysis on the result of this one-year-time trial and make sure the impact on thecompany’s financial, at the same time, providing the improvement measures based on theoperation and management status of the company has great realistic significance.Air transport enterprises have also been included in the scope of the reform. Airlinescompanies are different from general transportation enterprises, their business area is wide,the structure of the organization is large, the scope of services includes several differentbusiness, therefore they pay taxes in different ratio according to different business, Infinancial management, as a capital-intensive businesses, the airline companies have a hugeamount of business costs, most of these costs can go to the value-added tax invoices,constituted a large amount of output. As the large state-run airline company, easternairlines co., LTD put a good example for VAT reformation.This article firstly introduced the reformation background, defining the relevantconcept of the theory, at the same time, scholars at home and abroad and referred to thelatest achievements in tax reformation, showing the present research direction and researchdepth. On the basis of these, study the impact in the tax reform on enterprise’s tax burdenlevel, fixed assets, operating results and cash flow and other financial factors. With theexamples of China Eastern airlines, respectively, using statistical analysis and sensitivityanalysis study the enterprise’s tax burden level and actual operating loss overflowcondition, explore the implementation of the VAT reformation in2012of the financialimpact to the enterprise. Finally, explore how to help enterprise to do a good job infinancial management in the reformation, to develop business strategies and tax planningput forward the corresponding countermeasures, and points out that the article study limitations and future prospects.