Research on the Tax Burden of Chinese Insurance Companies After Replacing the Business Tax with a Value-added Tax

Abstract

The tax burden has long existed in the course of collecting the insurance industry tax. What’s more, the unreasonable taxation structure, etc. seriously restrict its development. Therefore, the promotion of replacing the business tax with a value-added tax (hereinafter referred to as BT to VAT) is an inevitable requirement to boost the internal construction and regulate turnover tax regime. Property insurance, as one of the primary services of insurance companies is able to profoundly reflect the influences brought by the policy of BT to VAT. This paper begins with the state of our country, while referring to the experiences of international tax system reform. What’s more, it takes PICC as an example, aiming to compare the tax burden before and after the implementation of BT to VAT as well as put forward logical recommendations.
Key words: BT to VAT; Insurance industry; International experience; PICC