Asymmetric reform bonus: The impact of VAT pilot expansion on China's corporate total tax burden

Fang, Hongsheng; Bao, Yuxin; Zhang, Jun

doi:10.1016/j.chieco.2017.02.003

Cited by 32 publications

(10 citation statements)

References 24 publications

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“…As companies in different industries face varying degrees of competition and overcapacity, they may behave differently when making investment decisions. Based on the fact that stricter supervision means the tertiary industry experiences less competition and fewer overcapacity problems than other industries, we refer to the practice of Hansen (1999), Alesina et al (2008), Fang and Zhang (2009, 2013) and Fang et al (2017), and divide all industries into two categories: non‐tertiary (the primary and second industries) and tertiary. Two dummy variables,

italicnotertiary

and

italictertiary

, are set up accordingly.…”

Section: Resultsmentioning

confidence: 99%

The Chinese‐style macroeconomic control: The role of state‐owned enterprises

Fang

Shi

et al. 2022

World Economy

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This paper extends the existing studies of cyclical fiscal policy by providing the first systematic theoretical and empirical study of cyclical quasi‐fiscal investment of state‐owned enterprises (SOEs) in China. Using data from Chinese listed companies and the System GMM method, the results show that: (1) both central and local SOEs exhibit expansion‐biased investment behaviours; (2) the expansion‐biased investment of central SOEs mainly goes to the tertiary industry and the western regions of China, while the expansion‐biased investment of local SOEs mainly occurs in the tertiary industry and the middle and western regions of China; (3) during the economic recession, the higher the local growth targets, the more bank credit central and local SOEs can obtain, and the more pronounced the expansion‐biased investment. The study shows that apart from the countercyclical fiscal policy implemented by central and local governments, the quasi‐fiscal function of central and local SOE investments is also key for the Chinese economy to quickly recover from recessions.

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italicnotertiary

and

italictertiary

, are set up accordingly.…”

Section: Resultsmentioning

confidence: 99%

The Chinese‐style macroeconomic control: The role of state‐owned enterprises

Fang

Shi

et al. 2022

World Economy

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“…We use DID analysis to identify the impact of CIT rate changes on corporate TFP following Galiani et al (2005), Imbens and Wooldridge (2007), Angrist and Pischke (2009), Beck et al (2010), Allegretto et al (2011), Chaurey (2017), Li et al (2016) and Fang et al (2017). The companies with rising and falling tax rates are treated as the experimental group, and companies with unchanged tax rates are treated as the control group.…”

Section: Methodology and Datamentioning

confidence: 99%

“…We calculate the impact magnitude following Fang et al (2017); 0.35% = 0.0626/18.0707*100%, where 18.0707 is the mean value of TFP of tax-falling enterprises in 2007 (the year before the CIT Reform). group (tax rate unchanged group), which can be preliminarily judged to meet the common trend assumption.…”

Section: Robustness Checksmentioning

confidence: 99%

Productivity effects of corporate income tax: Evidence from China

2022

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“…In addition, it shows that there is no heterogeneity between transportation industry and modern service industry, but the pilot effect varies according to deductible items. In particular, companies with higher intermediate input rate have a stronger tax reduction effect [11].…”

Section: E Impact Of Vat Reform On Enterprise Tax Burdenmentioning

confidence: 99%

Impact of the Reduction of VAT Rate on Southeast Coastal Real Estate Enterprises

Liu

Kong

Zhang

2021

Discrete Dynamics in Nature and Society

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This paper takes the southeast coastal real estate listed enterprises that have been at the forefront of China’s reform for many years as the research object. Through theoretical analysis and descriptive statistical analysis, it studies the impact of the reduction of VAT (value-added tax) rate in 2019 on the southeast coastal listed real estate enterprises from the perspectives of sales revenue, costs, tax burden, profit, and cash flow. The overall operating tax rate has shown a volatile downward trend; the average operating income level has shown a volatile upward trend; the purchase cost has decreased slightly and the change was not significant; the total profits of enterprises have shown a cyclical upward trend. Due to the impact of the real estate purchase restriction policy and financing environment in recent years, the reduction of tax rate has an effective but not significant impact on the enterprise cash flow. Overall, the tax rate reduction still has a positive impact on enterprises. Combined with the problems in the process of policy implementation, this paper puts forward that those enterprises should make scientific and reasonable tax planning, pay attention to the management of purchase and sales contracts and the mode of cooperation with upstream enterprises, regulate taxation to reduce tax-related risks, improve the management level of enterprises, and establish an industry finance integration system. At the national policy level, there is limited room and effect for the reduction of the VAT rate, and more preferential tax relief policies should be given directly, not limited to VAT, but can be extended to corporate income tax. In this way, that could improve the effectiveness of the tax reduction policy in the southeast coastal real estate industry and provide a reference for relevant industries in other regions to solve similar problems.

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Asymmetric reform bonus: The impact of VAT pilot expansion on China's corporate total tax burden

Cited by 32 publications

References 24 publications

The Chinese‐style macroeconomic control: The role of state‐owned enterprises

The Chinese‐style macroeconomic control: The role of state‐owned enterprises

Productivity effects of corporate income tax: Evidence from China

Impact of the Reduction of VAT Rate on Southeast Coastal Real Estate Enterprises

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