Business Tax Reform VAT Pilot Scheme &Nbsp; Next Year Shanghai First.

With the approval of the State Council, the Ministry of Finance and the State Administration of Taxation jointly issued a pilot scheme for the pformation of business tax into VAT yesterday.

Since January 1, 2012, the pportation industry and some modern service industries in Shanghai have been launched.

The VAT rate is adjusted to four.

In the pilot scheme, based on the current 17% and 13% two VAT rates, 11% and 6% two files were set up.

"The problem of levying business tax is to levy taxes on all business income, and there is a problem of repeated collection in the process. However, after the value-added tax is deducted from the input, it means levying the value-added part of the product, so it can reduce the burden on the enterprise."

Zhang Bin, director of the tax office of the finance and Trade Institute of the Chinese Academy of Social Sciences, said.

Zhang Bin said that the tax reform in 1994 will extend the scope of VAT levy to all goods and processing repair and repair services, and impose business tax on other services.

At that time, the tax burden of VAT and business tax was almost the same.

But after the pformation of value-added tax in 2009 and the incorporation of machinery and equipment into VAT deduction, business tax is higher than VAT.

The reform is to expand the scope of value added tax, to pform the pportation business and some modern service industries that have been levying business tax into VAT, and to adjust the tax rate, at least not to increase the tax burden, to a certain extent, to reduce the tax burden.

The Ministry of Finance said that it will closely follow the pilot operation in Shanghai and gradually expand the scope of the pilot, and strive to gradually promote the reform to the national level during the "12th Five-Year" period.

According to the example of CICC's report in the past, it is assumed that the traffic volume of a pportation company at that time is 100 million yuan, and the tax rate is 3% and the taxable amount is 3 million according to the business tax.

If added to the value-added tax, the tax is the output tax minus the input tax. Assuming that according to the pilot scheme, the output tax rate is 11% and the output tax is 11 million; assuming that the enterprise's external intermediate investment is 50 million yuan, and its input tax is 50 million times the value added tax rate of 17%, 8 million 500 thousand, then the value-added tax of the enterprise is 2 million 500 thousand yuan, and the tax burden is reduced by 500 thousand yuan compared with the original business tax.

The initial analysis of CICC shows that if the pilot is extended to the whole country, the tax burden of the pilot industry may be reduced by about 47 billion -700 billion yuan.

CICC said that large and medium-sized enterprises with perfect accounting system are the main beneficiaries in the pilot industry, and small and micro enterprises without independent and complete accounting system are hard to benefit.

According to the current VAT regulations, if small taxpayers are unwilling to bear higher accounting costs, they can choose to pay VAT according to 3% of their turnover, but do not carry out VAT deduction. Therefore, small and micro enterprises without complete accounting books can not enjoy the tax burden brought by VAT deduction.