Abstract:

Value added tax (VAT) reform in telecom industry is around the corner, which will have great influence on the operation of telecom enterprises. Quantitative method is adopted to analyze the influence on telecom enterprises’ tax burden level, profit and cash flow level brought by such reform. It is shown that the short-term reform influence should be treated with caution. Finally, three solutions, that is, improving the quality of income, strengthening cost management and promoting fixed assets tax planning are proposed.

Key words: value added tax reform, business tax, telecom enterprise, countermeasure