Taxation In China Research Articles

Research on the design and legislation of China's real estate tax system

In the context of the socialist economic system in the new era, real estate tax has become the focus of attention from all walks of life. For a long time, China's real estate tax has been unbalanced in structure, the scope of collection is limited, and the initiative of local governments is insufficient, which has become a problem that needs to be solved in an all-round way to promote real estate tax. With the promotion of the pilot real estate tax in the two places, we can learn lessons from it to pave the way for the comprehensive promotion in the future, and at the same time, we can see that the real estate tax has a direct impact on the stability of local government revenue sources and the stability of real estate market prices, and also has important significance for the improvement of China's tax system and income redistribution.

Tax reform and investment efficiency: evidence from China's replacement of business tax with VAT

PurposeExtensive macro- and micro-economics research has been conducted on China's tax reform, which replaced business tax with value-added tax (VAT). However, existing studies have not clarified the reform's impact on firm-level investment decisions. Hence, this study explored the effect of replacing business tax with VAT on firms' investment efficiency.Design/methodology/approachThe study used 2010–2018 data from China's A-share listed companies and a difference-in-differences (DID) model to explore the effect of the reform on firm-level investment decisions.FindingsThe authors found that China's tax reform has improved investment efficiency in underinvested firms, increased liquidity and decreased the level of reliance on external financing. The tax reform had a greater effect on investment efficiency in firms with lower liquidity and higher external financing reliance. Its effect was also more significant among non-state-owned and small companies.Originality/valueThis study fills the aforementioned research gap by exploring the effects of China's tax reform, thus providing a theoretical reference and a basis for policymaking.

Research on C2C e-commerce taxation based on mixed decision game

The rapid rise of C2C e-commerce in China has brought serious difficulties to China's tax collection and management. Based on the principle of progressive taxation, the necessity of Taxation on C2C e-commerce is analyzed and discussed. It is shown that the absence of Taxation in C2C e-commerce is contrary to the principle of tax equity and tax neutrality, and the tax revenue is lost.It is demonstrated that it is imperative that China to implement C2C e-commerce taxation in a comprehensive and standardized way. By constructing a hybrid decision game model between C2C business operators and tax authorities, the static game analysis of incomplete information is conducted for the balance of interests between tax authorities and e-commerce operators.

THE IMPACT OF BALANCING DOMESTIC AND FOREIGN TAX SYSTEMS ON ALLEVIATING TAXPAYERS' INEQUALITY AND ANXIETY

Abstract Background The economy of China has gotten impressive change in recent years, to which personal income got many times higher than before correspond. Global economy also had a great impact to China. There are more foreigner applied China’s Visa and work or live in China. How could their personal income income be levied, same or different with Chinese? Same or different with previous income tax policy? Personal income tax is the most concern of all natural taxpayers, which is directly related to the amount of personal net income, which impacted the living cost plan. Under the current situation that China strengthens the introduction of returnees who have gotten great achievement in certain business and research field and the tax administration of personnel outside the enterprise, there are now a large number of domestic and overseas taxpayers in group of the natural taxpayers. However, from 1998 to now, due to the personnel income huge gap between domestic and foreigner who were invited to work in China, there have been policy differences between domestic and foreign personnel in China's personal income tax payroll and salary foreign-related tax policies, which has resulted in the psychological inequity of taxpayers and caused the psychological inequity and social anxiety of domestic personnel. Subjects and Methods In this paper, the official tax data is selected, and the case of Appendix 4 in S.D.S.H. [2014] No. 65 document is taken as an example to use specific income data to generate different tax burden differences and impacts on the differences between domestic and foreign taxpayers under the same income, shows the unfair consequence according the present personal income tax policy. Results From these tax differences, it is found that there are still some problems in China's tax policy corresponding to personal income tax wages and salaries, such as tax unfairness caused by repeated deductions, additional deductions and tax exemption items for foreigners, which negatively affect the efficiency of talent policy, etc., and the psychological unfairness and social anxiety to domestic taxpayers are discussed. Conclusions Finally, the policy suggestions to improve the tax policy and link taxpayers' psychological injustice and social anxiety are put forward: According to the new talent policy which induced the high-level experts despite of their nationalities and the change of economic environment in which China’s GDP have been almost the advanced country group and individual income went up higher, China should make the fair tax policy, avoid repeated deductions, cancel additional deductions and tax exemption items for foreigners, and improve the corresponding tax system from the perspectives of improving tax fairness and efficiency, maintaining tax neutrality and simplifying the tax system. The range of data income levels selected in this paper is not comprehensive enough, and there is no specific research on ultra-high income groups.

Governing and Ruling: The Political Logic of Taxation in China, by Changdong Zhang. Ann Arbor: University of Michigan Press, 2021. xvii+331 pp. US$85.00 (cloth), US$39.95 (paper); also available as an e-book.

<i>Governing and Ruling: The Political Logic of Taxation in China</i>, by Changdong Zhang. Ann Arbor: University of Michigan Press, 2021. xvii+331 pp. US$85.00 (cloth), US$39.95 (paper); also available as an e-book.

The Last Strike: Age, Career Incentives and Taxation in China

The Last Strike: Age, Career Incentives and Taxation in China

Energy Transition and Regional Heterogeneity of Environmental Taxation in China: From the Perspective of Emission Reduction Effects

Environmental taxation is a formal environmental regulation policy formed by government intervention. It is generally believed that the imposition of environmental taxation can effectively promote economic agents to reduce pollutant emissions. Thus, based on panel data from 30 provincial-level administrative regions in China, this paper examines the pollution reduction effects and regional heterogeneity of environmental taxes on three major pollutants. It is found that the current environmental taxation in China can promote the emission reduction of ammonia nitrogen, and sulfur dioxide to a certain extent, but the effect on chemical oxygen demand is not outstanding. From the results of the regional heterogeneity test, there are differences in the effect of environmental taxation on the reduction of major pollutants in each region. The current environmental tax policy has a relatively strong effect on emission reduction in the western region with little effect in the eastern and central regions. Therefore, to better utilize the policy, this paper suggests adjusting the environmental tax levy standard according to local conditions and strictly levying environmental taxes and fees on various pollutants in terms of quantity.

Research on the Tax Policy of Cross-Border E-Commerce Company in Fujian Pilot Free Trade Zone

&lt;p&gt;With the rapid development of China's foreign trade, cross-border e-commerce companies have also emerged successively, and the corresponding tax policies and free trade zones to promote their development have also been rapidly established and improved.In the process of the free trade zone and the development of e-commerce enterprises, the formulation and improvement of tax policies will directly affect the development of the whole free trade zone and cross-border e-commerce industry.Starting with the current tax policies of Fujian Free Trade Zone, this paper analyzes the current tax preferential policies in China, and further improves the current problems of China's tax policies to provide reference for the healthy development of China's cross-border e-commerce.&lt;/p&gt;

The Impact of China's Preferential Tax Policy on the Development of the Alternative Fuel Vehicle Industry

In order to promote the high-quality and sustainable development of the alternative fuel vehicle industry, the Chinese government has given strong tax policy support. In China, the corporate income tax rate is uniformly 25%, and the government gives tax incentives to high-tech enterprises that meet the relevant appraisal standards: the tax rate is reduced by 15%. The purpose of this work is to analyze the impact of China's tax policy on the production of vehicles using alternative fuels and to assess the significance of tax incentives for the formation of significant incentives for the development of this production. The hypothesis of the study is to confirm the need to provide incentives for high-tech production of vehicles using alternative fuel to maintain a positive financial result of such production. This paper uses the OLS analysis model. Deriving data from the annual financial reports of BYD, Geely, SAIC Motor and Great Wall Motor from 2011 to 2020, analysis is carried out of the impact of income tax rate and debt ratio on net profit margin. Research has confirmed that income tax is positively correlated with net profit margin, and the debt ratio is negatively correlated with the corporate net profit margin. The higher the debt ratio, the less conducive to the improvement of the company's net profit margin. Corporate net profit margins are more sensitive to changes in income tax. This also provides an effective way to improve the tax policy to promote the development of new energy vehicles. Tax policy is the most effective tool for the government to carry out macro-control, helping to avoid the harm caused by "market failure" and guiding the development direction of the production of vehicles using alternative fuels.

Research on C2C E-Commerce Taxation Based on Mixed Decision Game

The rapid rise of C2C e-commerce in China has brought serious difficulties to China's tax collection and management. Based on the principle of progressive taxation, the necessity of Taxation on C2C e-commerce is analyzed and discussed. It is shown that the absence of Taxation in C2C e-commerce is contrary to the principle of tax equity and tax neutrality, and the tax revenue is lost.It is demonstrated that it is imperative that China to implement C2C e-commerce taxation in a comprehensive and standardized way. By constructing a hybrid decision game model between C2C business operators and tax authorities, the static game analysis of incomplete information is conducted for the balance of interests between tax authorities and e-commerce operators.

Analysis of Bim-Based Project Cost Management Maturity Model under the Vat Reform

Under the reform of the camp, BIM technology plays an essential role in the actual work. BIM technology can integrate a large amount of information in engineering construction on the basis of three-dimensional technology. At the same time, China's tax authorities vigorously promote the implementation of the pilot reform of the camp. Under such a background, China's construction industry is required not only to pay attention to economic development. The energy problem should also be placed at the key position in the process of enterprise development, which requires relevant units to constantly improve the level of project cost management. Under the implementation of the reform of the tax system of the business reform, the requirements of the project cost on marketization and informatization are more strict. Under the implementation of the reform of the tax system of the business reform, the requirements of the project cost on marketization and informatization are more strict. BIM Technology is fast, accurate in cost calculation and real-time control of the construction dynamic, multi angle problem and efficient cost control problem. BIM is no longer limited to plane, and the data drawn is not limited to points, lines and faces, but involves the building components with accurate parameters such as walls, doors, windows, etc. BIM Technology has the advantages of fast calculation, accuracy and stability, and can control the construction process of the project in real time. This paper mainly discusses and analyzes the project cost management based on BIM Technology under the operation reform and increase, and seeks the key points of project cost management in this process, and provides a theoretical support for the construction of various projects in China.

The Structure of Business Taxation in China

This paper documents facts about the structure of business taxation in China using administrative tax data from 2007 to 2011 from the State Taxation Administration. We first document the importance of different business taxes across industries. Although corporate income taxes play an important role for manufacturing firms, these firms also remit a large share of their tax payments through the value-added tax system, through the excise tax system, and through payroll taxes. Gross receipts taxes play an important role for firms in other industries, leading to spillovers that may affect the overall economy. Second, we evaluate whether the structure of China’s tax revenue matches its stage of development. A cross-country comparison of sources of government revenue shows that China collects a high share of tax revenue from taxes on goods and services and a high share of income tax on corporations. Finally, we study whether firm-level differences in effective tax rates can be an important source of allocative inefficiencies. Decomposing the variation in effective tax rates across firms, we find that government policies, including loss carry-forward provisions and preferential policies for regional, foreign, small, and high-tech firms, have significant explanatory power. Nonetheless, although effective tax rates vary along a number of dimensions, tax policy does not explain the large dispersion in the returns to factors of production across firms.

The impact of green taxation policy on China's economic growth

Subject. This article highlights the need to coordinate actions on economic growth and environmental protection in order to achieve the optimal situation in the development of the Chinese economy. Objectives. The article aims to consider methodological tools for assessing the impact of green tax policies on economic growth by building a dynamic panel model of the quantity and quality of economic growth and green tax policy. Methods. For the study, we analyzed the economic literature and empirical research on environmental taxation, environment and sustainable economic development in existing theories of economic growth. The Cobb–Douglas production function and Barla and Perelman's research ideas were also used. Results. The article finds that the degree of environmentalization of China's tax system remains low. Both constrained and extended green tax policies have deterrent effects on economic growth, and environmental decentralization does not contribute to the sustainable development of the economy, while weakening this adverse effect. Conclusions. China's tax reform needs to be improved to meet the real needs of green advancement. It is important to accelerate the transition from a double taxation system to a triple taxation system, which will create a multi-level and perfect system of green taxation.

Research on improvement strategies for low-carbon technology innovation based on a differential game: The perspective of tax competition

Under China's tax reform, the central government is given legislative power to determine taxes, while tax implementation and revenue rights are vested in local governments. The actual tax rate can be controlled by local governments through factors such as the intensity of tax implementation and supervision. We argue that the distorted implementation of an environmental regulation policy caused by tax competition is an important factor affecting the effectiveness of environmental regulation, which is the main cause of uncertainty in the relationship between environmental regulation and low-carbon technology innovation through changing the strategies of local governments and enterprises under the restriction of environmental regulation. Considering the impact of tax competition, this study builds a differential game model that consists of a local government and an enterprise to investigate the equilibrium solutions under different decision-making modes and analyse the roles of income tax and a low-carbon technology innovation reward. The following key insights are obtained. (i) In addition to the direct effects of tax competition on green technology innovation through influencing the enterprise's low-carbon technology innovation effort, it has indirect effects on green technology innovation by influencing the local government's environmental governance effort under the constraint of environmental regulation. Through the effective control of income taxes and low-carbon technology innovation rewards, tax competition can help improve the strategies of local governments and enterprises. (ii) The decision-making mode with cost sharing is a kind of Pareto improvement for the regional low-carbon technology stock if the cost sharing coefficient is effectively controlled. (iii) The enterprise can be motivated by the cost sharing contract to increase its low-carbon technology innovation effort, which is conducive to improving its optimal profit. (iv) The local government cannot be motivated by the cost sharing contract, and its optimal profit can be improved only if the cost sharing coefficient is below the threshold.

Analysis on Tax Collection and Management of Digital Economy

Digital economy is a new form of economic and social development based on a new generation of information technology. The rapid development of cloud computing, Internet of Things, big data, 5G and other information technologies and infrastructure have promoted the rapid development of China's digital economy. Due to the digitization of goods and services and the intangibility of assets in the digital economy model, it has also brought opportunities and challenges to the traditional tax collection and management model. This paper introduces the current scale of China's digital economy and the impact of the digital economy on China's tax collection and administration, clarifies the opportunities and challenges facing China's current tax collection and administration model, and combines the case analysis of China's digital economy tax collection and administration to give corresponding countermeasures and suggestions.

Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis

According to deduction principle in China's tax law, the excess transaction costs of enterprises are limited. Therefore, the higher the rate of enterprise transaction costs, the higher the transaction costs cannot be deducted before tax, resulting in the taxable income tax greater than the accounting profit. From the dynamic perspective, it is difficult to reduce the income tax burden when the accounting profit of the enterprise decreases, which will enhance the stickiness of the enterprise tax burden. On the basis of this theoretical analysis, this paper empirically tests the relationship between transaction costs and corporate tax stickiness with the big data samples of Chinese listed companies from 2009 to 2018. The empirical results show that with the increase of transaction cost rate, the stickiness of corporate tax burden will be strengthened.

Research on the Relationship between the degree of tax planning and regional economic growth——Take the provinces of the country as examples

With the continuous advancement of China's tax system reform, China is committed to using tax policies to guide resource allocation. Various tax preferential policies also provide more space for enterprises to carry out tax planning. Enterprises' tax planning has increasingly become one of the important daily activities of enterprises. In recent years, the influencing factors of economic growth have also begun to pay attention to the economic activities of micro subjects. Taking Chinese A-share listed companies from 2009 to 2019 as a sample, this paper uses multiple regression model to study the impact of enterprise tax planning on regional economic growth. The study found that enterprises' tax planning will leave more income in the enterprise, so that enterprises will have more power and take the initiative to expand the investment scale, and the output of enterprises' investment activities will be directly reflected in the regional GDP, which will indirectly affect the regional economic growth rate, which means that enterprises' tax planning behavior will promote the regional economic development.

Taxation issues for sharing economic business models

In recent years, the sharing economy has risen rapidly, infiltrating into many fields such as travel, accommodation, medical care, and finance, and has injected new development momentum into these industries. In the shared economy, the sharing of resources not only promotes the flow of social wealth, but also enables idle items to continue to use value and improve resource utilization. The rapid development of the sharing economy brings many benefits, but at the same time, some traditional business models are dying. In China, there is no relevant policy to integrate the economic business model into the scope of tax collection and management. This phenomenon has caused China's tax source. Loss. In response to this problem, this paper studies the taxation of the shared economic business model. Using big data analysis technology as a basic tool, through the analysis of domestic shared economic data, the research on the shared economic business model was completed. Based on the analysis of the status quo of the taxation system of the shared economic business model, the suggestions for perfecting the taxation system of the shared economic business model in China are given, so that the tax collection and management system such as the tax collection concept and the collection and management system can be better adapted. Sharing new requirements for economic development.

Structural optimization and carbon taxation in China's commercial sector

Given China's economic transformation and upgrading process, the green development of commercial sector is more and more important. Based on the trans-log cost function, this paper calculates the inter-factor and inter-fuel substitution effects in China's commercial sector from 1980 to 2016. Besides, the paper further analyzes the driving factors of the dynamic changes in energy intensity and the impact of carbon taxation in China's commercial sector. The main conclusions are as follows: (1) Capital, labor, and energy in China's commercial sector negatively correlate with their prices, and the self-price elasticities of energy, labor, and capital decline in turn. (2) The relationship between labor and capital is substitutional, and the same relationship is found when after considering labor and energy, and that between energy and capital is complementary. (3) Demand for energy sources negatively correlates with their prices, and there exist complementary relationships between energy sources. (4) Technical effects and substitution effects can effectively promote the decline of energy intensity in China's commercial sector. (5) Implementing a 50 RMB/tonne carbon taxation will lead to 5.50% energy savings and 6.21% CO2 reduction.

Coal taxation reform in China and its distributional effects on residential consumers

There is an ongoing reform in coal taxation in China, from a quantity-based to a price-based approach. While the coal tax could play an important role in resource conservation and air pollution reduction, its distributional effect is not well studied. This paper investigates the distributional effect of China's coal taxes on households before and after the reform. We find that about 30 percent of rural households and six percent of urban households are directly affected by the coal taxes, and that the directly affected households tend to be poor. We also find that provinces are affected differently by the coal taxes; the provinces that are more affected tend to have lower household income. By the Suits Index, we find that both the quantity-based and price-based coal taxes are regressive for residential consumers in China, and that the coal taxation reform had little effect on the regressivity of the coal tax. By simulation, we find that the regressivity of the coal tax could be reduced if the tax rate were set to be positively correlated with provincial household income.