The Influence Of "BT To VAT" On China’s Property Insurance Companies

The government work report points out that since May 1,2016 "BT to VAT" will be fully put into practice in China,to ensure that all industry tax only does not increase,the business tax will become relics.Gradually establish a pilot since 2012,the financial insurance industry due to its particularity,reform came last.In recent years,China’s economic development in the new normal,we will accelerate reform of the tax system,the implementation of structural tax cuts,is an important way to boost supply side structural reforms.Since the reform and opening,China’s insurance industry has developed rapidly,but it is still in its infancy.Serve as national policy support,development is relatively stable,while the development of the insurance industry has been subject to heavy tax burden,the implementation of "BT to VAT" can partly eliminate double taxation,to promote the insurance industry structure optimization,at the same time also will certainly have an impact.Therefore,based on the property insurance company’s tax burden as a starting point,firstly introduces the development of business tax system,in other countries the insurance industry to reform the system of precedent and determine the rationality of the change of paid VAT;Analysis of turnover taxes of the current state of the insurance industry in our country,further illustrate the shortcoming of the insurance industry implements the business tax and resistance;On this basis,the VAT simulation calculation,according to the insurance company’s business scope and characteristics of selecting the sample company data analysis calculated,after practice "BT to VAT",the largest VAT tax fell by 50%,the insurance industry average turnover taxes by 38%;On the basis of analysis of the industry,in order to be able to more detailed and complete reflection to" BT to VAT" before and after the change of the profits tax and insurance company,in this paper,the sixth chapter,in the form of case analysis,based on the Pacific Ocean insurance company’s actual financial data for calculation and analysis,results show that the tax burden also declined significantly,while net profit rose.According to above analysis,the influence of "BT to VAT" in the impact of insurance tax at the same time,will also bring certain influence to the management and decision-making,on the one hand,it is insurance company contract pricing,marketing model,such as need to change,on the other hand,the platform for value-added tax management,financial management system and the need to upgrade human resources management.Finally,this paper put forward the corresponding measures,to ensure smooth and healthy development in the tax system reform in the insurance industry.