A Study On The Tax Burden Of Manufacturing Listed Enterprises In China

Manufacturing is an important indicator to measure a country’s economicstrength, it’s the driving force of industrialization and the cornerstone to ensure thestable development of the national economy.During three decades since reform andopening, China’s manufacturing industry developed at a high speed. In2000, themanufacturing output had reached3trillion RMB, accounting for more than6%of theworld. In2010, the proportion of China’s manufacturing output in the world had risento19.8%, surpassing the proportion of U.S as the world’s highest level ofmanufacturing output. However, in recent years, China’s manufacturing industry wasfaced with the dilemma of low value-added products, rising costs of materials, lowlabor productivity and other negative condition, in which, the tax burden is anon-negligible factor.Under the circumstance, the paper studies the tax burdenchanges of listed manufacturing enterprises,analyzing the various factors that affectthe tax burden,so as to provide for a valuable reference when the governmentdepartments make favorable policy for the manufacturing industry.Reviewing the previous theoretical research and empirical research, the paperbased on the results to2008-2012Shanghai and Shenzhen listed companies fromempirical and theoretical aspects to explore the tax burden of manufacturingcompanies,as well as the affected factors to the tax burden. Firstly, the papersummarizes the research of domestic and foreign scholars on the corporate tax burdenmeasure and its influencing factors; Secondly, expound the tax burden theories,corporate tax theories,circulation tax theories,tax shifting and tax incidencetheories;Then,briefly describe and analysis the manufacturing industry developmentin our country; Fourthly,on the basis of previous research upon tax burdenmeasure,construct model to calculate the tax burden,then use the calculating data todo the empirical analysis. Fifthly, comparing tax incentive policy of our country withthat in foreign developed manufacturing countries to learn about their advancedexperience; Finally, on the basis of analysis ahead,we put forward advice on how toimprove the tax burden of our manufacturing industry.The main contribution of this paper lies in:(1)The Corporate Income Tax Rateof China’s manufacturing listed enterprises locates in low level among all industries,meanwhile the Circulation Tax Rate locates in high level, both the two have the rising tendency.(2)Counting up the corporate income tax and circulation tax,dividing theoperating revenue, working out the Total Tax Rate(TTR).(3)Third, throughempirical research samples, the paper found that the enterprise micro-scale have apositive correlation with the TTR, capital structure have a negative correlation withthe TTR,profitability have a positive correlation with the TTR,marketability havelitter negative correlation with the TTR,while the capital-intensity have no correlationwith the TTR.