| China adopted the reform of the tax system in1994, after restructuring the tax structure, VAT and business tax became the two most important turnover taxes in the tax system. At that time, the arrangement of the tax system adapted the level of economic development.But with the continuous development of the market economy and tax reform, the arrangement showed unreasonable, especially after the VAT transformation in2009. VAT general taxpayers who purchase equipment got deductible, making the VAT burden on the taxpayer lower than the business taxpayers. And business tax damaged the VAT chain, hindering the economic restructuring and industrial upgrading. Meanwhile, the two separately managed turnover tax system has also brought a lot of problems in practice. Therefore, the need for business tax reform became increasingly prominent.November2011the Ministry of Finance and State Administration of Taxation issued the VAT reform pilot project in order to reduce the tax burden and promote the industrial upgrading. Since2012pilot in Shanghai and experience the expansion of territory and industry, the VAT reform has covered the whole country,"2+7" industries and reform policy for the telecommunications industry is about to fall.The whole communications industry chain includes upstream companies as equipment manufacturers, midstream operators and downstream end users. Meanwhile, service providers, content providers’ position in the industry chain based on their cooperation mode with telecom operators. The telecom industry in this paper only refers to the midstream telecommunications operator.Before the reform the telecommunications operators mainly pay business tax as their turnover tax and they will pay VAT after the reform. Currently, the VAT rate policy the telecom industry may face are the following three possibilities:the rate of11%, the telecom companies face a higher tax burden; rate of6%, the telecom companies will lower their tax burden; the different rate of the VAT,basic telecommunications services11%and value-added telecom services6%.The VAT reform for telecom industry is coming soon and impact attract our attention. This paper stands the background of the VAT reform and the perspective of the whole industry chain, considering the impact of different reform. The paper is divided into five parts altogether.First chapter, introduction. This chapter mainly introduces the topic background and significance of this paper and the research status now as well as the research methods.Second chapter expounds the background and the status of the VAT reform including the meaning of the reform and the pilot situation now.Third chapter, the tax-related analysis of the telecom industry. This section firstly introduces the concept of the telecommunications industry and the development situation of China’s telecom industry as well as the competitive landscape of the industry now; Secondly, analysis the main taxes of China’s telecom companies and pointed out the coming policy changes, then reckon the change of the tax burden in a rough assumptions and point out the impact of the business model of the telecom industry. Finally, noting the influence of the telecommunications industry’ upstream and downstream industries and select the listed companies as example.Forth chapter, calculation the change of the tax burden of China Unicom during the reform.. This section calculates the impact of the tax burden based on China Unicom’s2013annual report after identify the analysis logical, the business area and the related taxes.Fifth chapter, the advice for the VAT reform of telecom industry. The section stands from the system designer’s view, put forward the VAT policy advice for the pilot.The main contributions of this paper is the analysis method of the industry chain with the selection of the specific companies.Of course, as it is difficult to get specific data, this paper’s calculation can not reach a precise degree, but the analysis method could be applied to the general situation of telecom companies. |
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