The Analysis Of Impacts On The Tax Restructuring Pilot In The Telecommunications’s Tax Incidence

As an important part of tax reform, the VAT policy is expanding in each field allover the country. In April2013,“VAT Expansion” policy is proposed in the meeting ofthe State Council to choose the railway transportations and telecommunicationsindustries as a trial. From1st January2014, railway transportation industry hasalready been included in experimental unit. The telecommunications industry willtake the same reform as railway in the future. The problem of telecom industry’scurrent tax policy consists low tax burden and unordered collection. After thebusiness tax changes to VAT reform, telecommunications companies would have morechanging in tax collecting methods and tax levels. As an important factor affectingindustrial development, tax burden is not only an intuitive way to measure the impactof tax reform on enterprises, but also one of the main factors of company profits.Analyzing the “VAT Expansion” policy in telecommunication industry is significantto its future sustainable development.This paper illustrates the analysis on VAT expansion how to impact on changes inthe telecommunications business tax research under current situation and problems oftelecommunication companies which were analyzed turnover tax system, this researchis relying on the theory of input-output analysis and including telecommunicationscompanies in12fields about the tax burden will rise to a certain extent from empiricalaspects. Telecom tax’s incidence level would be raised by reality factors. Based onthese results of empirical analysis and practical factor analysis, the paper shows fiveaspects of telecommunications policy VAT expansion reform, the main contentsinclude: tax policy clarity, tax collection and management tools improvement;practical pilots addition; the nature and essence of activities of telecommunicationscompanies definition, set tax rates classification; financial subsidies and taxincentives and other policy supplements; telecommunication enterprises managementmodes adaption and guidance.