Analysis On The Influence Of "Replacing Business Tax With Value-added Tax" On The Operating Performance Of P Insurance Company

Since May 1,2016,the insurance industry in China officially implemented the reform of replacing business tax with value-added tax(VAT),ending the history of paying business tax and opening the era of value-added tax for insurance enterprises.This is a major measure of structural tax reduction from Chinese government,and also the inevitable change of the insurance industry in keeping with the development of the times and market demand.Replacing the business tax with VAT is to eliminate the problem of double taxation that may exist in enterprises under the business tax system.In order to reduce the tax burden on enterprises,the government initiated the tax reform in order to give play to the advantage of "tax neutrality" of VAT,and to make up for the defect that the chain of VAT deduction breaks when the two types of taxes are parallel in the socialist market economy At the same time,the optimal and feasible tax plan is found to optimize the national fiscal and tax revenue system and enhance the vitality of the social market economy.So far,the insurance industry has implemented VAT tax policy for more than three years,and the impact of the tax policy on the insurance industry and enterprises has preliminarily revealed.Relevant institutions and tax experts and of the financial and insurance industry at home and abroad have done a lot of research to prove whether the tax reform of the insurance industry in China has reduced the tax burden on domestic insurance enterprises,whether the whole social industry chain of VAT deduction has played its full role and whether it has positive promoting effect on the business performance of enterprises.This paper takes P insurance company as an example.Three years after the implementation of the VAT policy,it focuses on the two specific guidelines for the construction of an evaluation system for the operating performance of financial state-owned enterprises issued by the ministry of finance,through data collection and sorting,using methods of theoretical research,comparative analysis of data and case study,with comprehensive,objective and strategic development principle,combined with the P company's actual operating results of the present stage and the ten important and representative financial indicators from financial report for comparison and analysis,the direct impact of replacing the business tax with a value-added tax on the operating and management performance of company P was studied from four aspects of the company's operating capacity,solvency,profitability and development capacity.Through the analysis of indicators,after the "replacing the business tax with a value-added tax",the enterprise tax burden pressure of P company was relieved.However,due to the limitation of policies and actual business conditions,the compensation expenses accounting for the largest proportion of costs could not be deducted from the VAT special invoice,which became a major operational difficulty of the insurance industry.At the same time,due to the negative impact of the global market environment of ship insurance and the shrinkage of domestic shipping business,the premium income and underwriting profit of P company have decreased greatly in the past two years,and the compensation cost is high,which brings new pressure and challenges to the business development.Based on the current situation of company P,this paper puts forward some Suggestions from the perspectives of Shanghai ship insurance industry and P company,combining the industry policies and the company's business conditions.Specifically,it aims to improve the company's ability in operation,debt service,profit and development,so as to ensure the long-term stable and healthy development of P company...