An Analysis On ABC DY Branch’s Tax Burden Impact Of The "Business Tax Reform To VAT"

With the rapid development of China’s economy,the parallel tax policy of business tax and value-added tax in China is becoming more and more difficult to adapt to the economic development.Practice has proved that the simultaneous existence of business tax and value added tax not only causes the interruption of the value added tax deduction chain,but also causes the problem of repeated taxation in the circulation process,causing some industries to pay too much tax burden.In order to improve this situation,since January 1,2012,the“Business Tax Reform to VAT” pilot work has been gradually pushed open in our country.As of May 1,2016,all sectors,including the financial sector,have been included in the pilot area of the "Business Tax Reform to VAT".At this point,business tax exited from the stage of history,and the VAT system will be more standardized.This is another profound change in the fiscal and tax system since the reform of the tax system in 1994.The main object of this paper is the banking industry in the financial industry.As an important part of China’s financial industry,banking is not only related to the development of the national economic lifeline,but also an important source of funds for the development of various industries,providing financial support for the development of all industries.Because of its complex and highly systematic characteristics,it has become the difficulty of the reform.This paper first describes the basic concepts of “Business Tax Reform to VAT”and the tax theory,interpretation of the change of tax policy of the banking industry before and after“Business Tax Reform to VAT”,and then takes the ABC DY branch as an example.Based on the ABC DY branch’s main operating results and tax payment,this paper takes the actual tax burden comparison method to analysis the actual tax burden changes.We can see that in the early implementation of “Business Tax Reform to VAT”,the tax of ABC DY branch do not achieve decline,and bring the increasing need of business transformation,and the increasing tax risk and other adverse effects.On the basis of further analysis of the causes of the problem,this paper puts forward countermeasures from cost,income,strategy and management aspects,hoping to provide reference for other similar commercial banks to deal with tax reform.