TITLE:
The Research on the Insurance Industry’s Tax Burden in China under the Background of Change from Business Tax to VAT
AUTHORS:
Kewei Chen
KEYWORDS:
Insurance, Tax Burden, Change from Business Tax to VAT
JOURNAL NAME:
Modern Economy,
Vol.9 No.4,
April
26,
2018
ABSTRACT: The insurance industry plays a key role in the national
economy and modern society. The tax policy has a wide range of influences on
the development of the insurance industry and the tax burden is the core of tax
policy, which is directly related to the business performance and the balance
of the insurance market. This paper estimates insurance companies’ effective
tax rate of business tax and income tax by selecting insurance companies’ financial
statement data from 2008 to 2015. We can see that the effective tax rate of
insurance industry is facing a heavy tax burden especially for property
insurance industry. By studying these problems, we should pay more attention to
the tax burden on the insurance companies in the implementation of value-added
tax in order to achieve the basic goal about change from business tax to VAT
that does not increase but decreases slightly the tax burden and eliminates the double taxation. We also should solve the
problems and challenges of insurance companies, facing change from business Tax
to VAT, thus promoting the development of the insurance industry and enhancing
its international competitiveness.