Business tax to value-added tax reform in China

Wang, Zhiyuan; Singh-Ladhar, Jagdeep; Davey, Howard

doi:10.1108/par-12-2018-0117

Cited by 11 publications

(2 citation statements)

References 16 publications

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“…China’s taxation is mainly levied in value-added tax (VAT). The common belief is that VAT in the Chinese tax system can reduce the tax burden, improve production efficiency and market mechanisms, promote the service sectors, accomplish the economic transition and align with modernized and international practices (Wang et al , 2019). For domestic transactions using RMB, the taxation must impose on the capital gains of NFT and levy-related VAT, consumption tax and other taxation that may be involved.…”

Section: Resultsmentioning

confidence: 99%

The control of tax corruption: evidence from nonfungible token market in China

Rahman

Jin

2023

JMLC

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Purpose In 2021, nonfungible token (NFT) has emerged and grown as a new digital asset and became a carrier for cryptocurrency holders in China. NFT opens the door of the digital world for creators’ rights and the realization of economic interests. However, potential problems such as money laundering, terrorist financing and tax avoidance risks have increased in China due to the lack of regulations. As tax control is an important tool used by the government to adjust the economy and market, this study aims to investigate the future market capitalization of NFT and provide value orientations to control the NFT market in China with a tax control approach based on the positive experience of other countries. Design/methodology/approach In this study, least squares and expert estimation are applied to predict the future market capitalization based on the global market, which can provide an understanding of the current NFT market and the significance of its tax control. In addition, the tax control and interpretation of Chinese taxation institutions and structures are also explored. Findings Results include the probable tax structure or policy that national institutions can carry out over different transactions. Conclusions show that introducing tax control to regulate and monitor the rise of state revenue and decline of illegal financing activities. Establishing tax control in the Chinese NFT market can provide a centralized guarantee to ensure the safety and legality of transactions and enable further progress. Originality/value This study puts forward new ideas on the future development of nonprofitable tokens based on blockchain technology from the perspective of taxation in China.

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Section: Resultsmentioning

confidence: 99%

The control of tax corruption: evidence from nonfungible token market in China

Rahman

Jin

2023

JMLC

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“…VAT has an important impact on economic development (Asllani and Statovci, 2018;Ayoub and Mukherjee, 2019;Huang et al, 2019;Wang et al, 2019). Hoseini and Briand (2020) found that the replacement of sales tax with VAT in India improved production efficiency.…”

Section: Introductionmentioning

confidence: 99%

The Effect of a VAT Rate Reduction on Enterprise Costs: Empirical Research Based on China’s VAT Reform Practice

Liu

Wang

Liu

2022

Front. Environ. Sci.

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China has implemented a series of tax system reforms to improve the business environment, reduce the burden on enterprises and promote supply-side structural reform. In this article, we focus on the value-added tax (VAT) rate reduction that occurred in 2018 and 2019. We analyse the mechanism of the impact of the value-added tax rate reduction on enterprises’ costs and conduct an empirical test using the DID model and data from Chinese listed companies. The main conclusions are as follows. First, the reduction of VAT rate can significantly reduce the total cost of enterprises. This means that the reduction of VAT rate plays a positive role in reducing enterprise burden, stimulating enterprise vitality and improving enterprise performance. Second, the “cost reduction” effect is more obvious in non-state-owned enterprises than state-owned enterprises. Third, Further heterogeneity analysis shows that the cost reduction effect is more obvious in enterprises that are high-cost, large scale, and those located in eastern China. Small and medium-sized enterprises and those found in the central and western regions failed to significantly reduce operating costs, indicating that they did not benefit fully from a reduced VAT rate, which partly shows that the benefits of VAT tax reduction are not evenly distributed among enterprises. This study can provide a reference for the government to further improve the tax system, optimize the living environment of enterprises, and promote the sustainable development of economy.

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Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model

Guo

Shi

2021

Economic Analysis and Policy

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Business tax to value-added tax reform in China

Cited by 11 publications

References 16 publications

The control of tax corruption: evidence from nonfungible token market in China

The control of tax corruption: evidence from nonfungible token market in China

The Effect of a VAT Rate Reduction on Enterprise Costs: Empirical Research Based on China’s VAT Reform Practice

Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model

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