Research On The Financial Impact Of The Business Tax Reform To Value-added Tax Of H Bank

With the policy to promote comprehensively deepening reform in China,the work to improve and perfect the fiscal and taxation system is a key point of all parts in this reform.As for some industries,the tax burden is too heavy,which is caused by some problems,such as double taxation with the business tax,the incomplete deductible chain of value-added tax and so on.In order to solve these problems,the pilot project of the value-added tax replacing the business tax was carried out from 2012.By 2016,every industry including finance is under the reform.The banking industry is an important part of China's financial industry.It is the lifeblood of China's economic development,and an important source of funds for every industry to promote their business development with the banking's financial support.People are increasingly concerned about the impact of this reform on banking industry.It is becoming an major subject in the field of banking tax reform to minimize the adverse effects.It is not only important for the development of the banking industry but also having a big practical significance for the entire China's national economy to make enough preparations for the transition from the business tax to the value-added tax.Studying the subject of the value-added tax replacing the business tax,banks will come to know the influences and take effective measures to ensure the smooth transition between the two taxes and achieve the object of this reform.Under the related policies and regulations,this paper consists of five parts based on the case of H bank.Firstly,the background and the significance are introduced,summarizing the research achievements at home and abroad for tax reform and pointing out the research ideas,methods and innovations.Secondly,this paper describes the basic concepts of the business tax and the value-added tax and combs the related policies and regulations about the business tax reform to the value-added tax on the banking industry.Thirdly,the paper introduces the basic situation of H bank and analyzes the financial impact on H bank's tax burden,profit,cash flow,accounting and so on.Fourthly,the paper summarizes several pivotal problems and proposes some response measures for H bank to cope the implementation of value-added tax replacing business tax.The last part presents the research conclusion,research prospects and shortcomings of this paper.The financial industry is a new pilot project of the value-added tax replacing the business tax.To choose the banking industry as a case follows the current hot spots.At present,the research about the reform of the value-added tax replacing the business tax focuses on the impact of the tax reform on the whole industry.Theoretically,the structural tax reduction will be realized.However,different results may appear with the different banks.H bank is a regional joint-stock commercial bank.This paper chooses H bank to make a case analysis,comes to a conclusion that the reform of the value-added tax replacing the business tax causes negative effects on H bank's tax burden,operating results,cash flow and accounting,and makes some suggestions appropriate to H bank as well as other similar commercial banks.