Study On The Impact Of "The Reform Of Replacing Business Tax For Vat" On ZX Commercial Bank

On March 23^rd,2016,Ministry of Finance of the People's Republic of China and State Administration of Taxation promulgated the notice to expand a reform program in pilot sectors nationwide for business tax replacement by valued-added tax,thus expanding the reform program into financial industry.Compared with real estate,construction and consumer services sectors,finance is a main source of national economic development,while banking services,as of entities for financial industry,has influenced every walk of life.Additionally,only China implements the reform program in the world,while banking will theoretically facilitate structural tax reduction;however,during the process of implementation,various consequences might emerge in reference to different banking scales.Under such circumstance,what kinds of impacts to banking the reform will bring are concerned in practices.Therefore,based on ZX commercial bank,this thesis tries to study the impacts of reform,integrating research findings with current tax policies and proposing suggestions according to tax-transition period.The study results will provide an example of operation management for ZX commercial bank as well as other commercial banks and facilitate the implementation of nation structural tax reduction alongside with the improvement of banking tax policies.With regard to commercial banks,the thesis firstly illustrates definition,scope,special business characteristics,tax-reform introduction with theoretical basis and keynote policies.And then,an analysis for banking&ZX commercial bank is conducted.Furthermore,the impacts on ZX commercial bank is investigated,which includes taxation impacts and reason analysis,business impact and financial analysis.The study finds that?1?the tax reform increases the taxation for ZX commercial bank in short term,while the increases in tax rate and tax base,the decrease in business cost&overheads tax-deductible items,and a prevailing model with interest-margin orientation altogether contribute to short-term taxation increase;?2?The financial statements of ZX commercial bank is firstly affected,while the net value of fixed asset in balance sheet and and capital structure in other financial institutes are changed.Apart from that,some adverse impacts to business performance brought by the tax reform can be founded through the analysis of income statements,and much greater challenge will be seen in financial accountancy;?3?ZX's procurement pricing,suppliers'selection,business extension and tax management are also affected;?4?Eventually,the thesis proposes relative suggestion on establishing and maintaining suppliers'information,building effective procurement pricing principles and suppliers'selection standards,amending purchase contract demo,improving pricing strategies,developing intermediary services and optimizing revenue structure,strengthening manual cost control and emphasizing invoice management.To pay tax in accordance with law and to optimize tax management structure are the mainstream strategies upon the tax reform program.