The Study On The Impact Of VAT On The Tax Burden Of Insurance Companies

The superimposed tax nature of business tax and the parallel taxation of VAT and business tax have undermined tax fairness,violated tax neutrality and inhibited the development of the financial industry.With the reform of tax system,the financial industry was included in the scope of "business tax to VAT" system as the last batch of pilot industries in 2016,which has realized the conversion of business tax to VAT and entered the era of VAT.However,due to the special nature of the financial industry,there has been no definite conclusion on how to reasonably regulate its taxation.Most of the academic researches on the conversion of the financial and insurance industry are focused on the calculation of the design of VAT levy,the impact of VAT levy on the operation or business structure of companies and the macroscopic tax reduction effect of the industry,but there are fewer researches on the impact of the "conversion" policy on the tax burden of the insurance industry,and most of the existing researches on the tax burden are theoretical or based on certain assumptions.Most of the existing studies on tax burden are theoretical derivations or calculations based on certain assumptions,but not the real tax burden of insurance industry after the implementation of "camp conversion",and there is a lack of empirical studies due to the small number of listed companies in insurance industry.Therefore,the impact of the "camp reform" on the actual tax burden of the insurance industry is uncertain,but only by clarifying the effect and impact of the implementation of the current tax policy can we point out the direction for the next step of tax policy improvement.Based on this,this paper will start the research on the impact of "business reform and increase" on the tax burden of financial and insurance industry through actual measurement.This paper firstly compares domestic and foreign literature on the "business reform" in the financial and insurance industry,and then analyzes the changes in the taxation system of the insurance industry before and after the "business reform",as well as the impact on the turnover tax burden,income tax burden and total tax burden of insurance companies.Then,we measured the changes of tax burden of each type of insurance companies before and after the "business reform and increase" by using the actual tax data disclosed in the annual reports of insurance companies to extrapolate backward,and measured the changes of tax burden of each type of insurance companies before and after the "business reform and increase" by two tax burden measurement methods based on business income and net profit.The actual results show that the overall tax burden of the insurance industry decreases after the "camp conversion",but there are differences in the changes of the tax burden of insurance companies with different business nature,company size and profitability.On the basis of the actual tax burden calculation and the reform objectives of the insurance industry,this paper further evaluates the effect of the tax reform of the insurance industry and finds that:(1)The overall tax reduction objectives have been achieved,but different types of The study finds that the overall tax reduction target is achieved,but there are differences in the changes of tax burden among different types of insurance companies;(2)The principle of tax fairness is not fully reflected;(3)The problem of broken VAT credit chain has not been solved;(4)The pricing of value-added services in insurance industry is unreasonable.Finally,this paper puts forward the following suggestions in response to the above problems: Firstly,optimize the input tax credit scheme for property and casualty insurance companies;Secondly,face up to the problem of internalization of costs behind the tax exemption preferences for life insurance companies;Thirdly,implement a differentiated tax collection and management scheme taking into account the characteristics and operation of insurance companies;Fourthly,define the essence of financial services and adopt the same tax scheme for services with the same essence;Fifthly,strengthen the interpretation of tax policies and clarify the ambiguous areas in the policies.