Empirical Study On Influencing Factors Upon The Actual Tax Burden Of China’s Agricultural And Sideline Foodstuffs Processing Industry

In modern society,taxation is not only the revenue for government,but also an important means for the government to regulate the economy. It is important for every industry in national economy,and also the balance development of national economy. The enterprise need to pay kinds of tax in China. According to the basic theory of tax,added-value tax,consumption duty,business tax belongs to the circulation tax,they can impute to consumers. However, the kind of income tax cannot be transferred,personal or the enterprise is the ultimate responsibility undertakers. Therefore,enterprise income tax is the main corporate tax burden. The new Law on Corporate Income Tax has enforced in 2008,has an extensive influence on the enterprise tax burden. Agricultural and sideline foodstuffs processing industry is an important basic industry,tax changes will affect the enterprise tax burden directly. So the enterprise income tax burden has been researched all the time.This article intends to research the tax burden of agricultural and sideline foodstuffs processing industry through theory and empirical analysis,the sample is based on the implementation of The new Law on Corporate Income Tax. First of all,this article will review the achievements related to this research retrospect,the content including three parts: the study on tax burden,the factors of enterprise income tax burden and how to calculate the tax burden. Secondly,this article will explain the theory research of tax,including calculation methods and so on. Thirdly,this paper selects sample data from listing corporation,analyses the micro influencing factors in enterprise income tax burden. To figure out how these factors influence corporate income tax through construct models. Finally,offer a proposal on how to reduce tax burden according to the results of regression results.Through theoretical and empirical analysis, this article draws the following conclusions:the tax burden of agricultural and sideline products processing industry has declined between 2009 and 2013,the average ETRs is 19.23%,lower than the statutory income tax rate of 25%. It shows that the new Law on Corporate Income Tax has benefit to the enterprise,played a positive role in promoting the agricultural and sideline products processing industry. Income tax is influenced on many factors,to this article,many financial economic factors like enterprise scales,asset-liability ratio, profitability and so on will effect on tax burden. Results there is a negative correlation between ETRs and fixed assets ratio,asset-liability ratio,current ratio and profitability,and there is a positive correlation between ETRs and enterprise scales,inventory intensity,long-term solvency ratios and stockholding structure. At the end of this article,some advices are given from financial decisions,investment decisions and stockholding structure.