The Effect Of The Insurance Industry On The Reform Of The Camp

Tax is an important basis for modern public management.How to achieve a fair tax burden,improve tax efficiency,have always been the focus of national tax work.In 2012,in order to promote the healthy,sustained and coordinated development of China's economy,the implementation of active fiscal policy,and to speed up the adjustment and optimization of the tax system,China launched a regulations of comprehensive " replace business tax with value-added tax".Three years of pilot work has achieved the desired results,as of the end of 2015,the cumulative decrease in tax revenue is 641.2 billion yuan,and overall tax burden of the pilot industry fell by32%.About 97% of the pilot taxpayers have less than or equal to that of before.In2016,Premier Li Keqiang point out the full implementation of the "replace business tax with value-added tax" in the "Government Work Report".The pilot expanded to the construction,real estate,finance,life services and other fields,from May 1.All new real estate is included in the deduction range to ensure that all taxes are reduced.For the insurance industry,in the business tax system,the tax burden is heavier.The insurance industry has also been included in the ranks of added-value tax followed by the financial industry.But the insurance company's system upgrade has not yet completed.The specific impact of "replace business tax with value-added tax" on the insurance company,the future tax rate,tax incentives and how to offset the input tax and other issues will be related to the healthy development insurance company.And less literature studied the expected impact of "replace business tax with value-added tax" on the insurance company.Therefore,on the basis of combing the predecessors' research,this paper studies the impact of the increase on the insurance industry.Firstly,the paper expounds the related concepts and basic theories of the tax system and the tax reform of the insurance industry,including the concept of business tax and value-added tax,the theory of tax neutral,the theory of optimal turnover tax and the theory of tax burden,and the theory of insurance tax,Insurance industry,value-added tax system theory.The author analyzes the influence of the "replace business tax with value-added tax" on the insurance company from the qualitative point of view on the basis of the theoretical research.First of all,the insurance industry-related tax rate,the relevantconcepts of "replace business tax with value-added tax",the basic theory was elaborated.It includes the business tax,the concept and difference of value-added tax,tax neutral theory,the optimal turnover tax theory and tax burden theory,insurance industry business tax system theory,insurance industry value-added tax system theory.On the basis of the theoretical research,the author analyzes the influence of "replace business tax with value-added tax" on the insurance industry from the qualitative point of view."Replace business tax with value-added tax" will decrease tax revenue and to enhance the profits.It will bring insurance product pricing changes,marketing will also change.The change of the payment method is most affected.The current payment method is mostly cash payment.In value-added tax system,if someone can not obtain the bill,the payment method must be adjusted.Based on the qualitative analysis,taking the PICC as an example to calculate the impact of "replace business tax with value-added tax" on the insurance industry.It shows that the insurance company's price and tax are separated,and result in the reducing of income and compensation payments.The reduction ratio was 5.7%.In2012-2016,the proportion of the value-added tax to income of insurance companies decreased by 5.1,5.28,5.27,5.27,5.17 percentage points respectively.Insurance company's pre-tax profits,corporate income tax and corporate net profit have increased,which was increased by 89,130,114,110,76.26 percentage points from 2012 to 2015.The overall tax burden of PICC property insurance fell by3.85,3.76,3.73,3.72,3.83 percentage points from 2012 to 2016.It reduced the insurance company's tax burden and in line with the original intention of "replace business tax with value-added tax".