China's value-added tax policy and intertemporal optimal assets allocation of enterprises--Based on the dual perspectives of VAT input refund and VAT rate.

ABSTRACT: The article sought to detect the impact of the value-added tax (VAT) policy on the enterprises' asset allocation from the dual perspectives of the VAT input refund and the VAT rate. Based on the influenced mechanism of the VAT input refund and the tax burden effect (and the price effect) caused by the VAT rate, enterprises' intertemporal optimal asset allocation models are constructed under the states of adopting the VAT input refund and maintaining the theoretical tax (non-)neutrality of VAT. When VAT rates of the general taxpayers are predicted to be reduced, we also use China's manufacturing and economic data to simulate specific cases to verify propositions under different states. The results show that: (1) When the VAT output tax rate decreases: if returns to scale are diminishing, en

SUBMITTER: Li J 

PROVIDER: S-EPMC10414652 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature