The Problem And Solution For Pilot Proposals Of BT To VAT Transformation In Banking Industry

Compared with business tax,value-added tax has the characteristics of tax neutral.It’s useful to avoid double taxation and reduce the tax burden on enterprises,more suitable for the current economic development needs.Therefore,in 2010,China prepared the tax reform plan form BT to VAT of goods and services.And the financial industry stared the plan in May 2016,being one of the last tax reform industries.However,as the most important component of finance,the trial tax policy of banking industry can’t completely satisfy the requirement of the value-added tax,which largely affects the result of financial tax reform.Therefore,finding the defects of the trial VAT,analyzing the factors and discussing the solution plan are very necessary and meaningful.By using several research methods,for example,comparative analysis method,experience learning,scenario analysis method,theory combined with empirical research method,etc.Several problems can be concluded as following: First,discontinuous chain of tax deduction lead to VAT tax neutral failing to taking effect.Second,the banking taxes burden is up,and overall profit is down.Third,trial policy be lack of regulations about banking innovation business.Investigate its reason,both the banking’s business characteristic and the external environment pressure should be considered,as well as the difficulties of relevant technical.Thesis discusses four main factors: the income structure of banking and the impact on fiscal income,the tax cost of collection and administration and banking industry particularity.It is useful to solve above problems by learning from the experience of international financial industry and domestic other industries.It takes different views,different policies have different target and pay attention to different market body and their interests.After analyzing problems and learning experience,it’s time to making specific and feasible plan to improve the trial VAT policy.My improvement program contents include the design idea,design conditions,contents and implementation difficulties.But pay more attention on the design idea and design contents.The idea can be briefly as "one center goal,two secondary objectives",namely,the center goal is perfect VAT deduction between industry chain,secondary objectives are down banking tax burden and low cost of tax management.Design content mainly include the elements of tax: taxable items,tax calculation basis,tax rate,tax incentives and tax collection and administration,among them,taxable items and tax collection and administration are centralized embodying the design concept,also are innovation points of this scheme.Generally speaking,all kinds of income are basis of the output tax,all kinds of expenses are basis of income tax.There form a mode of tax collection and administration which combine deduction by calculating and deduction by proof of invoice.Be to reasonable and feasible of the design,thesis explaining basic principle,measuring data and describing specific operation.Finally,recheck the scheme defects and modify them to be better.