The Study On The Impact Of Replacing Business Tax With VAT On Insurance Industry

With the continuous deepening of the socialist economy,market economy needs to be further improved,the original business tax and value-added tax parallel tax system has been difficult to adapt to modern specialized division of labor and the transformation and upgrading of service industry demand,further development of socialist economy hit snags.In this context,the national resolution further carries out tax reform,comprehensively implements the business tax reform value-added tax,and extends the scope of taxation to the construction industry,real estate industry,finance industry and life service industry,which also means that China officially leaves the business tax and ushered in the era of value-added tax.The comprehensive expansion of "replacing business tax with VAT" is conducive to improving the tax system,eliminating double taxation,opening up the chain of value-added tax deduction,improving the insurance industry system,optimizing the allocation of financial resources and improving social security level.Therefore,it is of great significance for the insurance industry to "replace business tax with VAT".In view of the particularity of insurance industry,this paper analyzes its tax burden from both theoretical and practical aspects.In theory,when the proportion of deductible input tax is more than 0.66% of the original revenue,the tax burden on the turnover tax and the urban construction tax and the education surcharge will be reduced.However,there are many factors influencing the tax burden of enterprise income tax,which is mainly influenced by operating income,operating cost,business tax and additional.In the case study section,P insurance company was selected as the research object to analyze the impact of "replacing business tax with VAT" on the tax burden of enterprises in 2015.The results of tax burden analysis are as follows: in 2015,the tax reform of P insurance company will result in the tax burden of turnover tax and the reduction of urban construction tax and education fee.The case enterprise proves that when the proportion of deductible input tax is greater than 0.66%,the tax burden of the turnover tax will fall,and the urban construction tax and education fee will be reduced.Secondly,P insurance company's value-added tax reform in 2015 will lead to an increase in the income tax burden.The change of operating income is related to the change of income tax burden;Operating costs and business taxes and additional changes are negatively related to the income tax burden.And the effect of VAT on enterprise income tax is apportioned into operating income and operating costs,which indirectly affects enterprise income tax.The rise in income tax after VAT is not necessarily a bad thing for enterprises,which reflects the increase of profits.Finally,the change of value-added tax in 2015 is positive for the overall financial impact of P insurance companies.Due to the decrease in the tax burden of the turnover tax and urban construction tax and education fee,although the income tax burden has risen,the increase is small and the total tax burden falls.In addition,this paper also analyzed the changes in the proportion of taxable income of each tax in the three years from 2015 to 2017(the three years before and after the "replacing the business tax with VAT"),and concluded that the tax burden of enterprise turnover tax was not decreased after "replacing the business tax with VAT",which was mainly due to the vague tax policy in the early stage of "replacing business tax with VAT".In addition,P insurance company was not able to obtain sufficient value-added tax deduction invoice in the adjustment period.However,this is only a short-term situation.In the long run,the insurance industry "replacing business tax with VAT" will help to open up the industry chain,avoid double taxation,and release the role and vitality of the market in economic activities.In 2017,the tax burden and the overall tax burden of the P insurance company will also show that "replacing the business tax with VAT" has achieved the effect of tax reduction for P insurance companies.Based on the above analysis,it is suggested that the insurance industry should respond to "replacing business tax with VAT" :(1)strengthen the tax planning of the subject tax revenue that affects the "value-added tax reform";(2)promote business model innovation;(3)reasonable pricing and transfer of tax burden;(4)increase investment in financial management and improve the professional level of financial personnel.To increase at the same time,based on the government's point about "replacing business tax with VAT" of policy Suggestions:(1)based on the particularity of industry adjust the tax rate(2)regulators relaxed intermediary agent(3)improve the insurance accounting system of examination and approval,deducting value-added tax on purchase of specific methods.