Studying On Optimizing The Tax Business Environment In China

As a crucial component of business environment,tax business environment is an important content that simultaneously influences high-quality development of a nation's economy.Optimization of the tax business environment,which not only has been an essential foundation for constructing a modern economic system and accelerating high-quality development,but also one of the significant parts in China's deepening reform in recent years as well as in other countries' economic work.Owning to insufficiency of global economic growth and escalation of downward pressure on the global economy,enhancing dynamics of enterprises development and optimizing the tax business environment have been highlighted.The development of enterprises is largely impacted by the optimization of the tax business environment,which results from the direct effect of tax burden level on enterprise net profit.Not only that,from the perspective of the impact that tax service and tax collection and management impose on enterprise tax costs,to optimize the tax business environment is to boost productivity,and accordingly to facilitate operating capacity and competitiveness of enterprise.Furthermore,the optimization of the tax business environment can also elevate China's core competitiveness,and thus promote the improvement of national tax governance capabilities and lay a good foundation for high-quality economic development.What's more,as the government action,optimization of the tax business environment which is essentially a strategic move carried out by the taxation thought of the supply-side economics manifests governance capability.The analysis of current situation of China's tax business environment in this paper is conducted by analyzing the ranking changes of tax indicators in the "Doing Business" report(2009-2019)issued by the World Bank,combining relevant tax and fee data of listed companies and issuing questionnaires to taxpayers.The research demonstrates that firstly the tax business environment is still at the lower level of the intermediate acquiring a large room for improvement with a certain gap with other countries or regions in the world although it has been greatly improved compared with the past.Secondly,the analysis on the listed companies reflects that the tax of some countries in our countries is still overburdened.At the same time,in terms of the macro tax burden,there aredifferences in the tax burden among provinces and cities in China,among which,the average tax burden in the economically developed regions is generally higher than that in the economically underdeveloped ones.And the results of the questionnaire state that the average taxpayer satisfaction with the business environment in China is3.77 that needs to be further improved.Moreover,the level of macro-tax burden is deemed as an important index to measure the tax business environment directly related to the economic development of a country.This paper analyzes the impact of macro-tax burden on economic growth through empirical research to show that every1% increase in the macro-tax burden reduces the GDP by 0.037164% during 2008 to2018.Consequently,the optimization of the tax business environment appears to be indispensable for the sake of actively implementing tax cuts and fee reductions and eventually lowering China's macro tax burden.In addition to the tax burden level,the other indicators such as tax services and tax collection and management are also inclusive in this paper.Therefore,from the deliberate research of these facets,we can excavate the problems in the construction of China's tax business environment whereby.There are four most prominent problems in the construction of China's tax business environment at present: first,the tax burden is comparatively heavy with enterprises bearing the major tax burden,stemming from the main orientation of the current tax system to enterprises and higher social insurance rates undertook by enterprises.Second,the taxpayer's compliance cost is relatively high,which is mainly due to the high cost of taxpayers' time,inadaptability to the constantly improving tax law caused by the low quality of corporate finance and tax personnel,complex tax administration process and substandard electronization.Third,the efficiency of tax authorities is of great underdevelopment and the ability of tax service needs to be heightened.fourth,the coordination capability of streamlining goveronment and delegating authrorities and strengthening tax management is not qualified.With regards to the main problems existing in the construction of the tax business environment in China,in the very beginning,evaluate the "Doing Business" report objectively and establish a scientific index system of the tax business environment.In the second place,deepen tax system reform on the basis ofstrengthening international cooperation and scientifically stimulate tax cuts and fee reductions.To be more specific,it should be more perfect from the following three aspects: adjusting the proportion of direct and indirect taxes in tax revenue;implementing tax reduction and fee reductions in-depth;and reaching equilibrium for the actual tax burden of each region.Finally,optimize tax collection and management work and build a modern tax service system,from which we should promote the formulation,revision and implementation of relevant laws on tax collection and administration and reinforce the construction of electronic tax bureaus,meanwhile shift the notion of tax collection and management and optimize the quality of tax services.Only achieving what have been mentioned above comprehensively can optimization of the country's tax business environment be prompt positively,and subsequently minimize losses in global tax competition.