The Research on the Insurance Industry’s Tax Burden in China under the Background of Change from Business Tax to VAT

摘要

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 do style="font-family:Verdana;">es style="font-family:Verdana;"> not increase but decrease style="font-family:Verdana;">s style="font-family:Verdana;"> slightly the tax burden and eliminate style="font-family:Verdana;">s style="font-family:Verdana;"> 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.