Impact Of Business Tax Reform To VAT On LY Company

Since the value-added tax was carried out and repalced business tax in Shanghai at thebeginning of2012, the tax reform has had a great influence on the tertiary industry. Thevalue-added tax repalced business tax of modern service industry has many importanttheoretical significance including eliminating double taxation, reducing the tax burden,improving the tax system, optimizing the tax structure. In addition, valued-added tax repalcedbusiness tax also has some practical significance such as deepening industrial division,revenue growth,etc. Undoubtedly, value-added tax repalced business tax is the inevitablechoice for a sound and fast development of modern service industry. However, based on thescientific theories, changing from business tax to value-added tax does not bring the expectedeffect of tax cuts to modern service industries.This thesis will firstly introduce the definition of modern service industry, business taxand value-added tax. Then talks about the relationship between modern service industry,business tax and value-added tax, and why to do it, the advantages of value-added tax repalcedbusiness tax for modern service industry. And introduces a particular case of company LY. Bycomparing the data of company LY after value-added tax repalced business tax to that before,the thesis can get the influence of tax reform to the company LY, including the businessincome, operating costs, corporate profits and the change of tax burden. Furthermore, thisthesis analyzes the financial situation of company LY such as operation capacity, profitabilityand debt paying ability, and analyzes the reasons for changing data.This thesis analyzes thecomponents of costs in detail in order to reduce the corporation tax burden. Most corporationsare concerned about if the reform can reduce the tax for them. By ananlyzing the change of taxburden of corporation after value-added tax repalced business tax and find the reasons forthose change. The thesis gives some realistic suggests for tax optimizing for company LY.