What is a tax burden and how is it calculated
Tax burden refers to the economic burden of a business or individual due to the taxation of the state, which is usually expressed in the form of a tax burden rate. The tax burden ratio refers to the ratio of the tax payable by the enterprise to its main business income, which is used to measure the tax burden borne by the enterprise in a certain period. The following is a more detailed introduction to the tax burden.
1. Types of tax burdens.
VAT tax burden: VAT tax burden refers to the ratio of VAT payable by an enterprise to its sales revenue. Value-added tax is a tax levied on the value-added of goods and services, and its tax burden is related to factors such as the operating conditions of the enterprise and the industry in which it is located.
Income tax burden: Income tax burden refers to the ratio of income tax payable by an enterprise to its taxable income. Income tax is a tax levied on the income of an enterprise or individual, and its tax burden is related to the profitability of the enterprise, tax policy and other factors.
Other taxes: In addition to VAT and income tax, enterprises may also face other taxes, such as business tax, stamp duty, real estate tax, urban land use tax, etc. The size of the tax burden of these taxes is also related to the business status of the enterprise, the industry in which it is located and other factors.
2. Calculation method of tax burden.
1. Calculation of tax burden rate: The tax burden rate is usually used to measure the size of the tax burden borne by an enterprise in a certain period of time. The calculation formula is: tax burden rate = tax payable and main business income 100%. Among them, the tax payable can be the tax payable of value-added tax, income tax or other taxes, and the main business income is the sales revenue or operating income of the enterprise during the period.
For example, if the main business income of an enterprise in a certain year is 10 million yuan, the value-added tax payable is 1 million yuan, the income tax is 500,000 yuan, and the tax payable for other taxes is 200,000 yuan. Then, the tax rate of the enterprise is calculated as follows:
Tax rate = (1 million yuan + 500,000 yuan + 200,000 yuan) 10 million yuan 100% = 17%.
This means that the tax burden borne by the enterprise during the year is 17% of its main business income.
2. Calculation of effective tax rate: The effective tax rate refers to the ratio of the tax actually paid by the enterprise to its profit, which is used to measure the actual tax burden borne by the enterprise.
It is calculated as follows: effective tax rate = 100% of the actual tax paid profit. The actual tax paid includes the value-added tax, income tax and other taxes actually paid by the enterprise, and the profit is the net profit of the enterprise during the period.
For example, suppose that the actual VAT paid by the same enterprise in the year is 800,000 yuan, the actual income tax paid is 400,000 yuan, and the other taxes actually paid are 150,000 yuan. The company's net profit for the year was $2 million. Then, the effective tax rate of the enterprise is calculated as follows:
Effective tax rate = (800,000 yuan + 400,000 yuan + 150,000 yuan) 2 million yuan 100% = 675%
This means that the actual tax burden borne by the business during the year is 67 of its profits5%。In other words, the business needs to spend nearly seventy percent of its profits on paying taxes.
3. Factors affecting the tax burden.
Tax policy: The country's tax policy is one of the important factors affecting the tax burden. Tax policies include tax rates, preferential tax policies, etc., and different tax policies will have different impacts on the tax burden of enterprises.
Industry characteristics: Enterprises in different industries face different tax burdens. Some industries may enjoy more preferential tax incentives, while others may face higher tax rates and strict tax regulations.
Business size: The size of a business will also affect its tax burden. Large enterprises usually have more resources and more bargaining power, and can enjoy more tax incentives;Smaller businesses, on the other hand, may face higher tax rates and fewer tax benefits.
Location: The geographical location of a business can also affect its tax burden. Some regions may enjoy more tax incentives, while others may face higher tax rates and less fiscal support.
Fourth, under the premise of legal compliance, ways to reduce the tax burden.
Reasonable tax planning: Enterprises can reduce their tax burden by planning tax planning reasonably. For example, taking advantage of preferential tax policies, rationally arranging the corporate structure, choosing appropriate accounting policies, etc.
Improve operational efficiency: Improving operational efficiency can reduce the cost of the enterprise, thereby increasing the profitability of the enterprise, and thus reducing the tax burden. For example, optimize the management of the ** chain, improve production efficiency, reduce inventory, etc.
Strengthen financial management: Strengthening financial management can help enterprises better grasp their financial situation and tax situation, so as to avoid unnecessary tax risks and tax disputes. For example, establish a sound financial system, strengthen internal audit, timely tax declaration, etc.
Fifth, look at the tax burden dialectically.
A dialectical view of the tax burden requires two perspectives.
On the one hand, the tax burden is an important part of the country's fiscal revenue, which plays an important role in maintaining the operation of the state apparatus and promoting economic and social development. A moderate level of tax burden can provide public services and infrastructure for enterprises and individuals, and maintain social stability and security.
On the other hand, excessively high tax burdens will increase the economic burden on enterprises and individuals, reduce their enthusiasm for production and consumption capacity, and then affect economic development and increase employment. Therefore, when formulating tax policies, it is necessary to weigh the public interest and economic impact, and ensure that the tax burden level meets the national financial needs, and reduce the tax burden of enterprises and individuals as much as possible.
To sum up, a dialectical view of the tax burden requires a comprehensive consideration of its impact in order to achieve the fairness and sustainability of the tax policy.