An Analysis Of The Impact Of "Camp" On China 's Modern Service Industry

“Replacing business tax with value-added tax” is an important part in financial and taxation reform during the period of “the twelfth five-year planning”. It is another significant reform after the value-added tax reform with the aim to expand the collection scope of the value-added tax and make the industries that pay business tax to change to value-added tax. After one-year exploration and practice in pilot areas, “replacing” yielded better results than expected. The benefit from the reform has become increasingly prominent. “Replacing” helped to solve the problem of double taxing and optimized the taxation structure. A better tax environment has been created to ease tax burden, promote the divisions of three industries and better connect domestic and global market in service industry. To make gradual progress in replacing business tax with value-added tax and make our domestic taxation system more in line with the global one is the theme of the new taxation reform. However, all sorts of problems may appear in the process of reform. Whether these problems can be solved or not is of vital importance for the success of the reform. This is why researches into the problems brought by reform and their solutions are particularly important. This article consists of six parts:The first chapter is introduction. Systematic explanations are given in terms of the background, goals, methodology and guidelines. This chapter also includes a literature review to have a look at the current research overview both in and out of the country. Domestic and global scholars conducted many researches since the pilot operation of “replacing” and the latter focused more on the theory research of business tax and value-added tax.The second chapter provides a general picture of “replacing” reform around the country. Business tax, a kind of turnover tax that has been operating for quite a while, contains the advantage of easy calculation. But it results in double taxing and improper tax structure. The introduction of value-added tax can help to solve the problem and make a great contribution to reduce tax burden and prevent double taxing. From January 1st on, “replacing” initiative began to be operated in Shanghai as a pilot area. This chapter elaborates on how service industry can benefit from “replacing” initiative. It also includes a comparative analysis between business tax and value-added tax.The third chapter elaborates on the influences “replacing” initiative has brought to a service corporation X based in Kunming. That includes the influences on the accounting course set-up, on financial accounting as well as influences on tax declaration from the corporation X.The fourth chapter is about the analysis into influences “replacing” initiative has on capital management in company X. What corporations care most is whether their tax burden can be eased after the implementation of “replacing” and whether a long-term development can be maintained. An analysis into tax burden changes before and after the implementation is conducive to structure optimization and sustainable development of industries as well as to improve their competitiveness. This chapter also includes an analysis about advantages and disadvantages “replacing” initiative has brought to capital management. How to optimize the management system are the real challenges faced by financial staff in this company. Financial staff ought to improve their professional levels and help the company to adjust financial accounting system to prevent value-added tax risks.The fifth chapter is about the measures need to be taken. A proper tax planning is needed in company X to improve awareness of financial staff and to strengthen the management over special invoice for value-added tax. The managing capacity of financial staff determines if a company can maintain long-term development. And an efficient managing system is a strong guarantee to enhance managing capacity.The six chapter talks about the research results and some shortcomings. It can be concluded that the “replacing” initiative help the company reduce the tax burden, solve the problem of double taxing, lower that tax costs and further improve the corporation efficiency. The deficiency of this essay is that the data collected is inadequate and analysis into case study is incomprehensive.