Study On The Impact Of VAT Expanding Reform On The Financial Leasing Enterprise Tax Burden

Financial leasing, which is one of the key sectors of the economic developmentin recent years in China, has both the nature of financial and service sector. It will beconducive to business current capital and updating equipment with limited financialresources. In our country, since the introduction in1981, this innovative form ofbusiness has been undergoing tortuous development to keep progressing. But fromleasing penetration and industry norms, our financial leasing is still not equal to otherdeveloped countries, and full set and perfect policy is necessary for it, including thetax policy. Tax policy has a great influence on the cost, the profits, and even businessoptions. Its disadvantage will hinder the development of the industry.The reform of VAT expanding since2011is for the purpose of structural taxreduction, and the financial leasing is one of the pilot industries. But actually, thisreform increased tax cost of some enterprises and hindered the further expansion ofoperating. Thus, this paper focus on the study of the influence of VAT reform on thetax burden, analyze the content of this reform, and the specific reasons, includingpolicy-making and practice.In this paper, data and comparative analysis are the main methods. Then basedon the briefly discussion of basic concept, theoretical foundation and history evolutionof industry taxation, this paper is focusing on analyzing clauses and elements of taxsystem, and calculates the tax burden, with the data about the whole industry andtypical enterprises. According to the analysis result, this article considers that the taxburden of some financial leasing enterprises has been indeed increased, because of thehigh rate of VAT, less VAT and the ineffective preferential tax policies. Finally, inconsideration of overall trend of China’s tax reform, this paper put forward somecorresponding suggestions about the finance lease tax policy, and consider that withexpanding scope of the reform, more emphasis on heavy tax burden and enterprise’sown adaptation, the VAT expanding reform will actually promote the developing offinancial leasing and reduce the corporate tax burden.