Empirical Research on the Impact of Replacing Business Tax with VAT for Profitability of Listed Company

摘要

As an important policy in the tax reform, replacing Business Tax with VAT began from 2012, full realization in 2016, and has been a hot topic of concern. With the consideration of main content, time and background, this paper suggest a hypothesis on how the profitability changed before and after replacing Business Tax with VAT, leading to a conclusion how it works on China's economic development and influences the listed companies. The result of the empirical analysis shows the tax effect of replacing business tax with VAT does exist, it not only reduced the tax rate of these companies, but also influenced by the amount of deductible input tax, the R&D investment, the investment in fixed assets and other factors. Combining with the conclusion and the actual, we give some suggestion on the improvement of the tax policy.