Study On The Tax System Of China’s Banking Industry About Changing From Business Tax To VAT

Since1994, our country did some reform about the tax system, we established the system that VAT and Business Tax are both important, this system is adjust to the development of the society at that time. But with the improvement of our economic internationalization, the boundaries of goods and services has become increasingly blurred, the disadvantages of this system appeared,"expand the scope of VAT, reduce business tax and other tax" has been listed in the "twelfth five-year" tax reform in our country. From the actual situation, our country banking taxation exists a series of some problem, such as double taxation, high tax burden, unreasonable tax structure and so on, which affect the healthy development of China’s banking industry. November2011, our country came up with the reform "changing from business tax into VAT", this reform puts new requirement to the banking industry and it is good for putting forward new measures to promote the banking development.It is theme of this paper, that VAT design idea of VAT Covering banking system and counter measures. According to this topic, the author analyzed the tax system of China’s banking from the aspects of theory and practice.The innovation of the article:firstly, the paper selects a topic very close to reality, and it analysis is rather systematic. During the analysis of the banking industry tax reform, combining with the policies, laws and the situation of changing business tax into VAT, the author have done comprehensive research. Secondly, this paper uses a wide variety of research methods, in including the theoretical research, comparative analysis, empirical research. Combining with statistical tools, analyzed the effect of put banking sector business tax into VAT. Thirdly, based on the actual situation of our country and the foreign experiences, the author’s propose some constructive suggestions. Such as tax rates, tax scope.However, this paper has some deficiencies. In the empirical analysis, there are many dates about banking VAT, but the channels of get the data is limited, which make some analysis only stay on the qualitative analysis. In addition, the statistical caliber of the data is different reduce the comparability of the data, and these factors are likely to weaken the research conclusion of this article. Look forward to the future improvement of the banking VAT reform.