Application of Corporate Income Tax including Evaluation of Tax Burden of Business Entities

Abstract

This paper focuses on the evaluation of corporate income tax burden on business entities based on the WIND, CSMAR database, the Shanghai Stock Exchange's and the Shenzhen Stock Exchange's annual reports, to obtain direct and indirect tax data of a certain number of listed companies in the electrical the manufacturing industry in recent years. The proposed method to solve the problem is by collecting data from 2015-2019 of listed companies in China's electronics manufacturing industry, using multiple linear regression, empirically studied the impact of corporation size, capital structure, company performance, ROA/ ROE, and macro influence factors on real corporate income tax burden. The results obtained in this research include that the size of the company, capital structure, ROA, and ROE is significantly negatively correlated with the real corporate tax burden. The income taxes are significantly positively correlated with the real corporate tax burden. And macroeconomics environment shows there is not any significant relationship between real corporate income tax.