Research On The Financial Impact And Countermeasures Of "Replacing Business Tax With Value-added Tax" On Telecommunications Enterprise

Business tax and value-added tax have always been the most important type of turnover tax in China.Both of them are independent and collected in parallel,forming a pattern in which the two taxes coexist.However,in order to create a fair tax environment for the establishment of a tax system that is compatible with China's socialist market economy,our country opened a prelude to "replacing business tax with value-added tax" in Shanghai in 2012.Hereafter,the scope of pilots has been growing,gradually expanding from transportation industry to other modern service industries.In June 2014,the telecommunications industry was formally included in the pilot program of "replacing business tax with value-added tax".On May 1st,2016,the launch of pilots was carried out on a national scale.This paper intends to start from the macro-background of "replacing business tax with value-added tax",comb the existing research literature,show the research overview,analyze the impact of "replacing business tax with value-added tax" on telecommunications enterprise A's finance combined with the characteristics of telecommunications industry itself,with the relevant data as the support,and then put forward effective countermeasures based on analysis results.This paper is divided into six parts.The first part sorts out the existing literature,which focuses on "replacing business tax with value-added tax" from three aspects,namely,tax reform,corporate financial impact and corresponding suggestions.On the basis of clarifying the meaning of business tax and value-added tax,tax base and applicable tax rate,the second part points out the outstanding contradictions that value-added tax solves the problem that the more detailed division of labor is the more serious repeated taxation is under business tax.The third part elaborates the development of "replacing business tax with value-added tax" in the telecommunications industry.The fourth part probes into the financial impact of "replacing business tax with value-added tax" on enterprise A and its causes.Combined with the relevant data,it analyzes the specific impact of "replacing business tax with value-added tax" on tax burden,operating results,cash flow and financial ratios by chart analysis and clarifies the challenges and opportunities that telecommunications enterprise A is facing in the context of tax reform.The fifth part puts forward countermeasures according to the difficulties and challenges that telecommunications enterprise A is facing.Telecommunications enterprise A can ease the pressure brought about by tax reform by adjusting the business management mode,optimizing the terminal sales model,adjusting sales channels,strengtheningenterprise risk management and promoting rational tax planning for enterprises.The last part summarizes the views and conclusions of this paper and points out shortcomings.The significance of this paper is that telecommunications enterprise A has its own management strategies and business growth models relative to other telecommunications operators,but the impact of tax reform on telecommunications operators is interlinked.As a basic industry concerning the livelihood stability of our country and in support of our national economy,it is particularly important for telecommunications operators to comply with the trend of tax reform and ensure its steady development.