A Research On Tax-related Changes And Tax Planning In Telecom Industry Under The Background Of VAT Reformation

As one of the pillar industries in China’s economy,the telecommunications industry was included in the program of " replacing business tax with valued-added tax," on June 1,2014 This magnificent tax reform has brought profound changes to telecommunications companies,affecting the management of enterprises all aspects.First of all,the article analyzes the necessity and urgency of our country’s VAT reformation.This paper argues that with the increasingly prosperous market economy and the trend of global economic integration,issues such as double taxation and chain deduction of VAT deduction,which are caused by the parallel introduction of the two taxes,have become increasingly prominent.So,the reform of our country’s tax is in conformity with the requirements of the development of the times and the law of economic development.In this paper,a combination of theoretical and case studies were conducted to investigate the financial data from China Mobile H companies,focusing on analysis of the income structure,cost-deduction rates,tax-related management models,comparative analysis of "business changes before and after" Tax management and financial performance trends,focusing on the reasons for the above changes and identifying and predicting the tax risks faced by telecom companies after the "business reform".Based on the analysis of financial indicators,this paper sorts out tax risks in different tax scenarios and focuses on the telecommunications industry’s response to tax risks and tax planning.Facts have proved that after the "camp change",the entire telecom industry has been hit and challenged.Income,profit,tax burden and other indicators have fluctuated,forcing the entire industry to speed up the pace of business adjustment and change the operation and management mode.After a period of running-in and transition,the telecommunications industry is gradually adapting to the changes brought about by the "camp change" and actively seeking breakthroughs.The financial performance and tax burden indicators of the entire telecommunications industry are characterized by the first,second,and third-generation optimizations.This paper points out the risks that enterprises can easily neglect in the process of "increasing profits and increasing profits",and puts forward countermeasures to a certain extent.In the end,it puts forward planning strategies in terms of selling items,entering items,accounting management,preferential tax policies and tax payment time,With a view to alleviating some tax burden on telecom enterprises through the above measures.