"The Replacement Of Business Tax With Value-added Tax" And The Tax Burden Of Banking Industry

The sustainable development of commercial banks can guarantee the smooth stability of China's financial system and economic structure.Since the financial crisis in 2008,the emerging situation of “financial disintermediation”,“intra-industry homogenization competition” and “Internet finance” has brought challenges to the banking industry and put forward new requirements.At the same time,the healthy development of the banking industry is inseparable from the support of tax policies.The “replacing business tax with value-added tax” is the most groundbreaking result in the tax reform in recent years,and its interests have a wide range of interests.Due to the special status of the banking industry,its business activities are more complicated than those of the industry.After fully demonstrating,it became one of the last batch of industries to be included in the “VAT reform” on May 1,2016.Considering the strong position of the bank,the government tends to take care of the entity when formulating policies,and avoids the bank's transfer of taxes to the real economy.Therefore,whether the banking industry enjoys the “tax reduction benefits” in this tax reform has been controversial.Compared with the business tax system,the bank obtains the effect of the input tax deduction after implementing the value-added tax,avoiding double taxation,but the tax-free project is narrowed,and the interest expenses and labor expenses,which are the main part of the cost,are still not included in the deduction chain.The effect of bank tax cuts is not obvious,and even in the early stage of policy implementation,there is a phenomenon of “no decline and increase”.This paper first analyzes the turnover tax burden,income tax burden and comprehensive tax burden,and finds that the tax burden changes are related to the bank's cost-income ratio and the deductible rate.Then the paper puts forward the corresponding research hypothesis on the results of theoretical analysis,and uses the non-equilibrium panel data of listed banks in 2010~2018 as a sample,and uses regression analysis to study how the “replacing business tax with value-added tax” affects the turnover tax,income tax burden and comprehensive tax burden of the banking industry? Considering that the cost-to-income ratio of different banks is related to the direction and extent of the impact of the “replacing business tax with value-added tax” policy on the tax burden of the banking industry,this paper deeply studies the impact of the policy on the tax burden of the banking industry under different cost incomes.The empirical research shows that the “replacing business tax with value-added tax” has a significant impact on the tax burden of the banking industry and the income tax burden,and has no significant impact on the overall tax burden;specifically,the policy has a significant negative correlation with the tax burden of the turnover tax,and The income tax burden is significantly positively correlated;When the banking VAT deductible project and the non-deductible project constitute a fixed proportion of the cost,the greater the cost-to-income ratio,the tax reduction effect of the turnover tax will be enhanced,and the income tax burden negative effect will also be strengthened.The above analysis shows that the establishment of a tax system conducive to the sustainable development of the banking industry requires the joint efforts of the government and major banks.For the government,it is necessary to gradually resolve the policy “legacy issues”,narrow the tax base,and break through the chain;for banks,improve their standardized management capabilities,strengthen input tax management,optimize business structure,and actively carry out tax planning activities.In addition,banks with high cost-to-income should focus on the conversion of non-investment deductible items in cost,fully utilize the VAT deduction system and tax incentives,and improve operational efficiency.