The Impact of the ＂Replace the Business Tax with VAT＂ on the Enterprises Tax Burden

Since 2012, China has started to carry out pilot work on ＂Replace the Business Tax with VAT＂ in Shanghai, and in the same year expanded the scope of implementation in 8 provinces and municipalities. From August 2013, ＂Replace the Business Tax with VAT＂ were carried out nationwide. From May 1st, 2016, China will fully implement the pilot reform and increase the construction industry, real estate industry, financial industry, and life service industry into pilots. At this point, business tax will be withdrawn from the stage of history. VAT system will be more standardized. The large-scale promotion and implementation of ＂Replace the Business Tax with VAT＂ has not only eliminated the problem of double taxation, but has also achieved the major goal of structural tax cuts. The in-depth implementation of the taxation reform has played an active role in promoting the establishment of a sound taxation system in China, promoting the upgrading of China＇s industries, and optimizing the economic structure. It has important implications for creating a fair tax environment interiorly and promoting the development of social economy. In this paper, the quantitative study on whether the tax burden of the enterprise has been reduced after the ＂Replace the Business Tax with VAT＂ has been verified, to verify the policy effect of ＂Replace the Business Tax with VAT＂. at the same time, it can also provide some suggestions for enterprises to tax administration.

Research on Influence of ＂Business Tax to VAT＂ Reform on Real Estate Enterprise

This year is a crucial year of pushing forward the reform of supply side structural. Tax cuts is a simple, direct and effective measure. ＂Business Tax to VAT＂ reform suit the needs of the structural adjustment. It also has a positive effect on getting through the deduction of VAT chain, completely promote the market specialization, promote the organic integration of the second and third industry in our country. On Mayl, 2016, our country implemented ＂Business Tax to VAT＂ reform pilot, Including construction, finance, real estate and life services in the scope of the pilot. The policy implementation will inevitably bring different level tax burden influence to the enterprise. In this article, through analysis of the state council issued the ＂Business Tax to VAT＂ reform file, together with the present situation of China＇s economy, the real estate enterprises camp to increase after taxes influence and studied.

Research on Optimizing the Tax Business Environment - Taking Shunde Taxation Bureau's Innovation Reform as an Example

Since 2013,optimizing the business environment has become China's national strategy.In recent years,the Party and the government have continuously introduced a series of new measures such as the'"streamline administration,delegate power,strengthen regulation,and improve services55 reform to promote the continuous optimization of the business environment.As an important part of the business environment,the tax business environment is of great significance to improve the business environment and promote economic development.By analyzing the current situation of the tax business environment in China,this article discusses the existing problems in the process of optimizing tax business environment in China.Taking Shunde Taxation Bureau's innovative reform of tax business environment optimization as an example,this article introduces the practical innovation and promotion of optimizing tax business environment from four aspects:promoting convenience,digitalization,legalization,and intensive reform,in order to provide relevant experience for the optimization of tax business environment in other areas of China.

Consideration of the Application and Risk Prevention of VAT Tax Rebate Policy for Construction Enterprises at the End of the Period

The“Announcement on Deepening the Value-Added Tax Reform”clearly outlines the preferential policy regarding incremental retention tax rebates.With the advancement of value-added tax(VAT)reform and the improvement of VAT legislation in China,VAT tax planning for construction enterprises,particularly related to retained tax credits,has become routine.This paper,focusing on the characteristics of construction enterprises,analyzes VAT retained tax credits at the end of the period,the status of tax refunds,practical issues,and related processes,and offers suggestions for policy application and risk prevention.

Business Combinations, Goodwill and Deferred Taxes： Evidences Emerging From a Comparative Analysis Between Italy and Bulgaria

The starting point for the research was the evidence of a possible contradiction in the provisions of IAS 12 on goodwill and deferred income taxes, i.e., about the need to calculate deferred income taxation on temporary differences relating to all assets except for goodwill. This paper aims at exploring the degree of consistency between the theoretical provisions of International Accounting Standards （IAS）/International Financial Reporting Standards （IFRS） and their actual application by the management of Italian and Bulgarian listed companies, as regards the accounting treatments of deferred income taxes relating to the item ＂goodwill＂. The findings suggest that there are some differences between the accounting methods used by the management of most Italian listed companies and the provisions of IAS/IFRS. It can be argued that the rules given by IAS/IFRS are sometimes contradictory, since they may cause doubts in interpretation. As a consequence, in the end of the paper, an amendment to the provisions, set forth in IAS/IFRS concerning the accounting treatment of deferred income taxes relating to the item ＂goodwill＂, is proposed.

The Impacts of Tax Procedures Reform on Business Environment in Vietnam： Achievements and Further Reforms

Tax procedures are factors that strongly affect the business environment. A simple and convenient tax procedures system will contribute to a good business environment by easing of tax returns preparation, reducing tax compliance costs, and preventing corruption. This paper examines the results and impacts of previous tax procedures reform on Vietnam＇s business environment, identifies challenges of tax procedures reform now and the coming years, and discusses areas where further reforms are needed to sustain tax revenue and reduce compliance costs including： （1） wansparent and comprehensive guidance to all tax laws and other legal tax documents; （2） widening the application of risk management in tax administration; （3） continuing simplification of tax procedures; and （4） development of IT in tax administration.

The Empirical Analysis on Cognitive Degree of the Restaurant Industry to ＂Replace the Business Tax with Value-added Tax＂

The restaurant is traditional industry of the third industry in our country. Since May 1 in this year, China＇s Restaurant Industry to implement ＂replace the business tax with value-added tax＂ policy and change to pay VAT. This paper analyzed the possible impact on restaurant industry after the＂ replace the business tax with value-added tax＂ based on the understanding of the tax theory of＂ replace the business tax with value-added tax＂ and the tax compliance in our country. At the same time, this paper used the statistical analysis of data on the investigation of 100 samples of the VAT cognitive degree on ＂replace the business tax with value-added tax＂, using principal component analysis method to analyze and evaluate factors on the awareness of the restaurant owner to ＂replace the business tax with value-added tax＂ tax policy. After multiple comparison made on the sample data, this paper summarized and analyzed the countermeasures of improving the pushing effect in restaurant industry ＂replace the business tax with VAT ＂.

Analysis on the Influence of "Replacement of Business Tax by Value-added Tax" on the Cost of Highway Projects

The"replacement of business tax by VAT reform"(hereby refer to as"VAT reform"for short)is a newly promulgated and implemented tax policy,and its impact on various industries in China is very different,and the highway project industry is no exception.The implementation of the"VAT reform"will not only have a positive impact on the cost of highway projects,but will also have some negative impacts.For this reason,highway project construction corporates must actively respond.The author explores and analyzes the positive and negative effects of the"VAT reform"on the cost of highway projects,and proposes a reform strategy for highway project cost work under the background of the"VAT reform",in hope of helping with bringing out the intrinsic value of highway project cost management work.

Effects of China's BT-to-VAT Reform on Listed Companies' Turnover Tax Burden

Using the data of China's listed companies during 2010-2014 as samples, this paper employs the PSM and DID methods to respectively investigate the effects of BTto-VAT reform on the turnover tax burden for companies in pilot regions(Shanghai and eight other provinces and municipalities) and the rest of China. Our study arrived at the following findings: Compared with pilot sectors in non-pilot regions, BT-to-VAT reform has no significant effect on the turnover tax burden of pilot companies in pilot regions; compared with non-pilot companies, BT-to-VAT reform slightly increased the turnover tax burden in the short run and somewhat reduced the turnover tax burden for pilot companies in the long run. Further differentiation of ownership nature led to the discovery that BT-toVAT reform somewhat reduced the turnover tax burden of SOEs and central SOEs, slightly increased the turnover tax burden for non-SOEs and local SOEs in pilot regions, slightly increased the turnover tax burden in the short run and somewhat reduced the turnover tax burden in the long run after nationwide pilot programs were introduced; BT-to-VAT reform has more significant effects on non-SOEs and local SOEs. In general, BT-to-VAT reform has no significant effects on the turnover tax burden of companies and after differentiating pilot regions, pilot sectors and ownership nature, we did not discover any significant effect, which is generally consistent with policy expectations.

Value-Added Tax （VAT） on Selected Financial Transactions

This paper deals with the approach to imposing value-added tax （VAT） on financial transactions. The VAT is a highly harmonized consumption tax within the European Union （EU）. VAT operational rules have been set down by the relevant directive of the Council of the EU. Under the directive, it is possible to select either exemption or taxation of financial transactions. Only the first option is permitted in the Czech Republic. Pros and cons of both models are described, in particular, the problems with determining the difference between financial transactions and other similar performance that must always be subject to tax. Potential lower VAT revenue or tax base assessment, as appropriate, seems to be crucial in the case of the taxation of financial transactions.

Business Briefs

China＇s securities regulator, the China Securities Regulatory Commission （CSRC）, said on February 8 that it will continue to support energy-saving and environmentally friendly firms that are in conformity with the nation＇s industrial development policies to launch initial public offerings （IPOs） and grow through effective use of the capital market. The CSRC said that strategic emerging industries, including energy saving and environmental protection, are important aspects of structural reform. The CSRC has already introduced measures to broaden financing channels and lower financing costs, such as Shenzhen-Hong Kong Stock Connect. By the end of June 2016, a total of 70 energysaving and environmental protection firms were listed on the SME board of the Shenzhen Stock Exchange. while 59 were listed on ChiNext. China＇s NASDAQ-style board.

Business Briefs

Support for Insurance The 13hinese Government on August 13 unveiled measures to develop the insur- ance industry, vowing to raise premium incomes to 5 percent of GDP by 2020. The package issued by the State Council aims to let the insurance industry play a bigger role in the fledgling social security network. The second of its kind since 2006, the package could see citizens pay ing an average of 3,500 yuan （$565） per capita in premiums by 2020. Commer- cial insurance will become the primary undertaker of individual and household programs and an important supplier of corporate pensions and health insurance The insurance will be given a bigger role in the prevention and relief of disasters and accidents through introduction of catastrophe insurance products.

Cumulative Effect of Debt and Tax on Firm Value:Optimal Capital Structure Theories in the Light of EMM

We have shown that cornerstone articles considering effects of corporate debt on the firm value and constituting the basis of the trade-off theory of capital structure are wrong.Their main mistake is in ignoring the business securing expenses(BSEs).In the framework of the extended Merton model(EMM),we consider the cumulative effect of debt and corporate taxes on the firm value and its survival,in other words,we revisit Modigliani-Miller Proposition 3(MMP3).We show that(1)debt affects the firm value and its survival,(2)this effect is negative,diminishing the firm value and its chances to survive,(3)the pressure increases as the debt grows provoking the firm’s default,(4)the main factors depressing the levered firm are its debt payments added to the BSEs of the identical unlevered firm and the length of debt maturity,(5)corporate taxes cause development of positive skewness in the asset distribution,but do not affect the location of this distribution in the asset axis.The presented model helps estimate the consequences of choosing this or that level of debt in the presence of corporate taxes and can make a useful instrument for practicing financial managers.

增值税税率优化的财政经济效应——基于可计算一般均衡模型的模拟

优化税制结构是新一轮财税体制改革的内在要求,实现第一大税种增值税税率的简并优化是税制优化的重要选择。本文构建了一个能够反映增值税“购进扣税”征收特征的多区域可计算一般均衡模型(MRCGE),模拟分析增值税不同税率简并方案的财政经济效应和收入分配效应。研究发现:两档税率模式的简档降率改革会带来税收减收,同时降低经济扭曲,提高生产效率,因此能够促进总体消费、投资和国内生产总值的增长,并降低收入差距;9%和8%两种单一税率会带来总税收收入增加和GDP的增长,并缩小收入差距;税率简并的财政、经济和收入分配效应在地区间具有明显的结构性差异。本文研究结果表明,增值税“三档并两档”和保持各行业税负“只减不增”的单一税率方案,面临减少和增长的取舍,就短期而言,可以采取“13%基本税率+6%低税率”的模式,实现“三档并两档”的改革;考虑到企业所得税的低税和优惠政策的局限与调整,减降增值税将成为税制结构优化和增值税改革的重要着力点,由此建议将增值税税率改为8%的单一税率。与此协调应完善转移支付和增值税横向分配机制,构建财力均衡、区域协调的纵向横向财政关系,缩减地区间财政经济社会发展不平衡,畅通国内大循环,助力实现中国式现代化。

增值税留抵退税政策对企业韧性的影响

基于2012—2021年上市公司微观数据,以2018年增值税留抵退税试点政策作为外生冲击,构建双重差分模型进行准自然实验,分析增值税留抵退税政策对企业韧性的影响,并运用中介效应模型分析其影响机制。研究结果表明:增值税留抵退税政策的实施能有效提升企业韧性水平,且该政策对东部地区、民营及中小企业的促进效应更为明显。从影响机制来看,增值税留抵退税政策可通过促进企业现金流流转、缓解企业融资约束、提升企业创新能力三条路径增强企业韧性。发挥税收激励提升企业韧性的作用,应提高增值税留抵退税政策的精准性,充分发挥政策协同效应,重点关注中小微民营企业在面对突发事件冲击时韧性增强的路径和策略。

Spillover effects of VAT Self-enforcement properties:Evidence based on the replacement of business tax with VAT reform

In accordance with the purchasing tax-deduction method and the receiptbased value added tax(VAT)system,the same transaction can be recorded by two firms,which creates self-enforcement properties,thereby restraining tax avoidance.Using the Replacement of Business Tax with VAT reform in China,this paper adopts a difference-in-differences design to investigate the spillover effects of VAT self-enforcement properties on corporate income tax avoidance by manually collating information about suppliers/clients of listed firms.As the listed firms’suppliers/clients switch from paying business tax to paying VAT,there is a striking decline in their corporate income tax avoidance behavior.This effect is pronounced in firms with closer upstream and downstream correlations,higher information complexity and stronger incentives for tax avoidance.

County-Level Tax Sharing:A Statistical Basis for Measuring China's Fiscal Decentralization

Controversies exist in literature regarding what indicators should be employed to measure China's fiscal decentralization. This paper measures China's fiscal decentralization by the sharing ratios of county-level VAT and corporate income tax(CIT). This approach avoids such problems as homogeneous denominator, and reflects the intricate interactions between governments at different levels. Based on extensive sources including the National Fiscal Statistical Information at Prefecture and County Levels and China County(City) Socio-Economic Statistical Yearbook over the 1998-2007 period, our estimation and analysis led to the following findings:(1) Since 2002, counties have retained a falling share of revenues;(2) a multidimensional horizontal comparison reveals a pattern in the county-level tax sharing ratio, i.e. counties in central and eastern regions retain a higher share of tax revenues compared with those in western and northwestern regions.These findings explain the fiscal difficulties at the grassroots level, and can be used to conduct a quantitative analysis of the determinants and economic effects of China's fiscal decentralization."

The realistic choice to replace business tax with VAT in China’s financial industry

It has become a global problem to levy the standard value-added tax(VAT)on financial services.Due to the infeasibility of credit input VATs by invoice,it is infeasible to build a standard VAT system in this field.If the government has to levy VAT on financial services,a practical choice is to adopt an account book method,which is to levy the special tax base through the account book using a single-rate.Meanwhile,it is not allowed to credit input VATs in this method.This kind of VAT is in effect a business tax.Due to the government’s authorized monopoly,there is no so-called over-taxation in China’s financial sector.As a result,the reform of“Replacing Business Tax with VAT”in finance should proceed without changing the original tax burden.After having conducted abundant research and statistical analyses,as for the VAT rate,9%is advised.The original way of levying taxes on the full amount of value is suggested to supplant with a new means of levying taxes on added value,with a slightly raised tax ratio,to reduce the tax base.

Supporting Innovation Through a Mechanism of Accelerated Depreciation in the Republic of Uzbekistan

The state plays a paramount role in the development of the national economy. In this development process, the state with direct levers, using the available tools as state financial support, banks systems, and tax policy, can provide incentives to identify areas for managing business entities. Obviously, one of the main levers of the state policy is a tax policy. Tax policy plays a crucial role in supporting innovation activities, which in turn provide sustainable economic growth for both the economic entities and the state. Whereas, due to guaranty of sustainable production line in the market economy, the economic entity always needs additional financial resources that ensure the renewal of fixed assets. The present paper focuses on the variation of calculations of the depreciation fund in the Republic of Uzbekistan. Regarding to both the tax rates and interval of the residual value of fixed assets, without attracting financial flows, the economic entities can update fixed assets, which on the same time increases the tax payments to the state budget in case of Uzbekistan.

Principles of Indirect Tax Harmonization in the EU

Since the beginning of 60s of the 20th century the European Community has been voicing its concerns about the need for tax harmonization. First attitudes towards tax harmonization were very ambitious. The aim was not only to reach structural harmonization in the Member States, but also harmonization of tax base and tax rates. The article explores the nature and conditions of the harmonization process while addressing its legislative modifications. The article analyses and compares the most important indirect taxes （value added tax, excise duties） in the Member States of the EU. Despite decades of efforts to harmonize taxes countries continuously apply national taxes. Heads of the Union argue that this approach can lead to disintegration in the future.