Research On The Impact Of "VAT Reform" On A Commercial Bank

Whether the value-added tax system or the business tax system is more suitable for China's current economic development? There are always controversies in the academic field.After years of research and decision-making,the government began to reform Business Tax to Value-added Tax(B to V)in 2012.From then on,the implementation of reform had been extending from the initial individual provinces and municipalities to all industries nationwide for more than 5 years.At last,the B to V reform basically completed in 2016.The most important features of this taxation reform are to reduce the multiple taxation,accomplish the whole value-added tax chain,promote the economic development,and help to reduce the tax burden of enterprises.From the perspective of the long-term healthy development of economy,as the inevitable choice of history,VAT replaces the Business tax,is an important measure to promote the industrial upgrading and the development of innovation ability.For commercial banks,it is necessary to conform to the historical trend.Since 1984,China had levied business tax from commercial banks,which had a history of more than 30 years.Although there were a few changes during this period,the substantive characteristics of business tax did not change.After the reform and opening-up,with the continuous development of China's economy,the commercial bank industry also ushered in the golden period,at the same time the amount of business tax increased year by year.Most scholars believe that China's commercial banks have heavier tax burden,which does not conducive to the development of the banking industry.Therefore,a reasonable taxation adjustment is needed.However,due to the complexity of commercial banks' business,high variability and difficulty in defining product types,the B to V reform started later,and there are still a lot to be done on the policies and practices.On the basis of the studies on the theory of commercial banks' B to V reform,the author combines the data of A commercial bank to carry out the new policies for about one and a half years,and focus on the concrete impacts on operation,tax burden and profitability of the small and medium-sized commercial banks brought about by B to V reform.This paper analyzes the effects of tax reform on A commercial bank and provides data to support for tax reform.This paper studies the following aspects: firstly,by referring to a large number of relevant documents,the author gets a general overview of two kinds of taxation: value-added taxation and the business taxation,and expounds that thecommercial banks take the reform into practice is inevitable;secondly,using comparative analysis and SWOT analysis,the author researches the advantages,disadvantages,opportunities and challenges of A commercial bank's operating,as well as the tax burdens under the two kinds of taxation.In addition,by means of reasonable calculation methods,the author compares and analyzes the profitability of the same business activities under different taxation;finally,on the basis of summarizing the impacts of tax reform on A commercial bank,this paper provides several countermeasures,and go a step further to think about the influence and measures of the reform on the small and medium sized commercial banks.It is hoped that this research could point out direction and accumulate data for further research in this field.