Research On The Impact Of "business Tax To VAT" On The Tax Burden Of China's Commercial Banks

China began to implement the reform of tax-sharing system in 1994.By 2009,China has successfully realized the transition from production-oriented value-added tax to consumption-oriented value-added tax.In 2011,the Ministry of Finance and the State Administration of Taxation jointly issued the tax reform documents such as the “Business Tax Reform VAT Pilot Program”.From then on,the "Business Tax to VAT" policy began to be implemented at the industry level.On the one hand,the implementation of the "Business Tax to VAT" policy will help improve China's competitiveness in the new round of tax reduction.On the other hand,it will help China's industrial adjustment,promote the optimization and upgrading of China's industrial structure,and promote the smooth realization of China's structural tax savings.The financial industry is an important lifeline of China's economy and also an important cornerstone for the smooth operation of China's real economy.It plays a pivotal role in currency settlement and financial communication in China's capital market,and is also an important pillar industry of the national economy in China's tertiary industry.If the tax burden of the financial industry changes,China's national economy will inevitably undergo important changes.On May 1,2016,the financial industry was included in the pilot program of "Business Tax to VAT",and the uncertainty of the impact of tax payment on the tax burden of commercial banks has attracted much attention.On the basis of academic policy,empirical analysis and mathematical calculation,this paper is based on the tax-related theory,according to the implementation plan of China's "Business Tax to VAT" policy,combined with the current tax burden of commercial banks in China.This paper makes a theoretical and Empirical Analysis on the impact of the implementation of the policy of "Business Tax to VAT" on the tax burden of commercial banks.In terms of theoretical analysis,this paper analyzes that the limitation of the deduction policy may offset the tax reduction effect of VAT,and the switching of tax payment methods may also increase the tax cost of the bank.In addition,thirty-two quarterly tax schedule charts of 16 commercial banks also do not support the tax reduction expectation of "Business Tax to VAT".Therefore,it is very uncertain whether the implementation of the "Business Tax to VAT" will achieve the expected tax reduction target in the banking industry.In terms of empirical analysis,this paper collects 32 panel data of 16 commercial banks in China from the third quarter of 2010 to the third quarter of 2018,(excluding the second quarter of 2016).By using the variable coefficient model,this paper makes a regression analysis on the tax burden changes of commercial banks before and after the implementation of the policy of "Business Tax to VAT".The results of empirical analysis show that: on the whole,the "Business Tax to VAT" policy has not achieved the expected burden reduction effect.The tax burden of commercial banks after the "Business Tax to VAT" has shown a growing trend after removing the trend of time;From the point of view of a single commercial bank,the implementation of the policy of "Business Tax to VAT" has great differences in the policy effects of different commercial banks.The policy objectives of the "Business Tax to VAT" policy are not satisfactory;In addition,the results show that compared with joint-stock commercial banks.After the implementation of the "Business Tax to VAT" policy,the tax burden of state-owned commercial banks has declined to a greater extent,and they have enjoyed more tax preferences brought about by the policy changes.In order to ensure that the overall tax burden of the commercial bank industry does not increase or decrease,this paper holds that the tax rate of VAT in financial industry should be further reduced at the institutional level.At the policy level,we should improve the scope and methods of VAT deduction for commercial banks.At the level of enterprise management,the level of tax-related management of commercial banks should be improved.At the same time,during the implementation of the policy of "Business Tax to VAT",enterprise income tax should also be reformed accordingly.In order to ensure that the tax burden of enterprises can only be reduced but not increased,so that enterprises can truly enjoy the benefits of policy changes.