Analysis On VAT Reformation Effect To Finance Lease Companies And Industry In Our Country

China is currently in the key stage of its "Economy Restructure". How to balance primary industry, secondary industry and tertiary industry, and improve the transformation of economy development will be especially important to our country in the coming years. Finance leasing industry will play a key role in this process. As a new force of tertiary industry, finance leasing industry has great potential in market developing. Meanwhile, its development will also provide significant support to the secondary industry and other service industries.The practice of "Value-added Tax Reformation" in specific industries which started since 2012 has impacted finance leasing industry in all aspects. The government is making efforts in reducing enterprises’ tax burden by establishing a complete value-added tax system, and meanwhile improving the development of tertiary industry and transformation of industry chain.Based on such a historical background, the paper focuses on the overall research of micro and macro environment faced by finance leasing industry after the "VAT Reformation" started. Empirical and qualitative analysis are used in this paper to observe the good and harm which VAT Reformation did to finance leasing industry. Improvement suggestions are made with the consideration of the current status and issues. The main contents are concluded as follows:1. Research VAT Reformation’s impact on finance leasing companies’ profitability (or tax burden), cash flow and industry chain through empirical analysis.2. Overview the economic statistics of last year and make qualitative analysis on the changes brought to finance leasing industry and its surroundings by VAT Reformation.3. Describe the main issues brought by the VAT Reformation. Give suggestions to each of the issues and discuss about their advantages and disadvantages.