Research On Impact Of "Replace The Business Tax With Vat" To SQ Financial Leasing Company

Financial leasing is an important component of modern service industry.Besides the influence of institutional change and market economy,taxation policy is also one of the important factors affecting the industrial development.With the changes of initial difference payment of business tax,"replace the business tax with VAT" developed from some industries to all after May 1,2016.Each change in taxation policy has brought new challenges and ordeals to financial leasing.Because financial leasing is an emerging field in China,its development is greatly affected by taxation policies.And there are many margins in financial and taxation policies whether in theoretical research or practice.Therefore,it is necessary for domestic scholars to continue researching and exploring.As an important measure for the country to implement a structural tax reduction policy,"replace the business tax with VAT" is a major reform that promotes economic restructuring and development.During the period of the initial pilot reform in 2012,tangible property leasing is classified into the modern service industry.The pilot project operations have provided a lot of experience for the financial leasing industry to fully implement "replace the business tax with VAT" in the last four years.In 2016,the tax reform policy was fully implemented,ending the history of tangible and immovable property leases that respectively belong to value-added tax and business tax,and completing the pilot reform of the entire leasing industry.However,China’s financial leasing is mainly based on direct leasing and sale-leaseback.The single business model and imperfect taxation policy have caused the development of China’s financing leasing industry to be less mature than that of developed countries.Therefore,it is necessary to research implementation of "replace the business tax with VAT" in the financial leasing industry.It is hoped that the financial leasing industry will make a smooth transition during the reforms,make greater contribution to the optimization and upgrading of China’s industrial structure.It has been more than a year since the comprehensive implementation of "replace the business tax with VAT".It is necessary to study the impact of the entire "replace the business tax with VAT" process on the financial leasing industry.This paper adopts a combination of theoretical research and case studies to study the effect of the implementation of SQ companies.SQ company is a domestic-funded financing leasing company,categorized into relatively large-scale manufacturers.As a research object of the fiscal reform policy,it hasvery important research value.On the basis of relevant theoretical research on financial leasing and "replace the business tax with VAT",this paper expounds the development status of China’s financial leasing industry and comprehensively reviews the taxation policies of finance leasing industry.It analyzed the three aspects of taxation,after-tax profit and business.The study founded that: During the implementation of "replace the business tax with VAT",SQ company experienced large fluctuations in tax bearing,decreasing of after-tax profits,frequent business changes and declining in bargaining power.The company has the problems of declining bargaining power,difficulty in implementing preferential tax policies,and inadequate policy risk management capabilities.Then the author put forward suggestions from the standpoint of the country,the government can strengthen communication with companies,allow lessees to deduct partial sales tax,and clarify related tax policies.From the perspective of the company: carrying out real estate leasing business,adjusting pricing and calculating the project in advance.It is hoped that the financial leasing industry will make a smooth transition during the reforms and develop smoothly and make greater contribution to the optimization.And it is hoped that it will make greater contributions to the optimization and upgrading of China’s industrial structure and sustainable and healthy economic development.