Research On The Influence Of " BT To VAT" On The Tax Burden And Financial Performance Of Broadcast,Film And Television Industry

The policy from business tax to value added tax(VAT)is a significant reform.Since August 1,2013,the broadcasting and television industry has been included in confines of the policy from business tax to VAT.The implementation of the policy aims to avoid double taxation,reduce corporate pressure on tax and alleviate the unfair taxation and so on.Whether replacing business tax with VAT can improve corporate financial performance and lower tax reduction deserve our further research.,because the policy from business tax to VAT is put into effect later in the broadcasting and television industry,the broadcasting and television industry,corresponding research results are lack,so the paper puts emphasis on the changes of taxation and financial performance concerning broadcasting and television industry from business tax to VAT.Broadcasting and television companies mainly contains two types:Producers and Distributors and Broadcaster,which concerns different business domains and profit models,so there is lack of comparability between them.In order to make the research well-directed and valuable,the paper selects Producers and Distributors as the research object.The paper is divided into four parts.The first part introduces the relevant theoretical base,including the police from business to VAT,enterprise performance and the choices of performance evaluation index.The second part includes theoretical analysis and descriptive statistical analysis.Concerning theoretical analysis,how the policy from business tax to VAT should affect corporate pressure on tax and performance is analyzed and the rate of return on equity is selected as the index of evaluating enterprise performance.In statistical analysis,10 listed companies are chosen as samples,the changes of corporate pressure on tax and performance from 2012 to 2015 are analyzed before and after replacing business tax with VAT.The results of statistical analysis show that the average tax burden of the sample companies is reduced,but financial performance declines.On the one hand,the adverse impact of the industry's macro environment can account for the phenomenon.On the other hand,lower profitability and increased total assets caused by rising costs rate lead to the decline in operating capacity.The third part adopts the case of Enlight Media to analyze the trends and causes of financial data from the perspective of the tax burden and corporate performance owing to the replacement of business tax with VAT to make a further research with regard to the impact of the policy from business to VAT on corporate pressure on tax and performance.The results of the tax burden show that the tax burden of the samples increases after the implementation of the policy,which is not consistent with the statistical conclusions that average tax burden of the sample companies is reduced.Through a further analysis,the conclusion is that the revenues of Enlight Media have a higher growth rate than the industry averages and a lower growth rate in acquisition of deductible assets,which lead to higher tax burden rate.Financial performance of Enlight media decreases due to the decline in profitability and operating capacity.Depressed external environment during this period affects broadcasting and television industry performance;the internal causes are ascribed to unreasonable asset purchases and rising cost rates after the policy.The fourth part is about the countermeasure research,the paper list a few suggestions,such as reasonable asset investment,optimizing the corporate financial system,obtaining VAT invoices to reduce the tax burden and improve the performance of enterprises based on analysis of the third part.The paper aims to analyze the influence of policy from business tax to VAT on tax burden and the performance of Enlight Media and put forward constructive suggestions about the policy from business to VAT.Firstly,Enlight media can optimize business structure and investment policy to achieve reasonable tax avoidance and desired financial performance.Secondly,other broadcasting and television companies can draw on the experience of Enlight Media.Thirdly,other industries enjoy the policy before long can take the case as reference to cope with the possible adverse effects of the policy in advance.Fourthly,the government can formulate relevant policies and some measures to deal with the tax reform from business to VAT based on the research.