Research On State-owned Joint-stock Commercial Banks' Tax Burden And Profitability Impact Of Business Tax Reform To Value-added Tax

For the past few decades,the coexistence of added value tax and business tax has caused problems such as multiple taxation and unfair tax burden.In order to improve the taxation system,starting form 2012,China has been pursuing tax reform,which is value added tax in place of business tax on an expanding scale across different industries and regions.Specifically,starting from May 1st 2016,the financial industry started to carry out value added tax instead of business tax,and the banking business is the most important object of implementation.It has been a year since the taxation system in banking business started to implement value added tax instead of business tax,and analyzing the effect of the policy on the business and how to solve the negative effects is important to further improve the taxation system reform.This paper first introduces the issues that exist in the current taxation system through discussing basic taxation theories.Then follows the analysis of the necessity and feasibility of the taxation reform on business tax and value added tax,and at the same time,summarizes the history and effects of the reform.This paper selects four State-Owned Shareholding Commercial Banks as objects of research,and examines all of the four banks' taxation and profit situation after the taxation reform from both short term and mid-term aspects.After the empirical research,this paper concludes:First,from either the short term perspective or mid-term perspective,when keeping the bank's revenue constant,implementing value added tax instead of business tax increases State-Owned Shareholding Commercial Banks tax burden.Second,value added tax replace business tax will reduce bank profitability.This paper will analysis the reason for above alterations and makes some appropriate suggestions for State-Owned Shareholding Commercial Banks further development.