Abstract:Taking the Chinese listed firms between 2010 and 2014 as samples, this paper employs PSM and DID model, and respectively investigates whether “replacing the BT with a VAT” conducted in Shanghai, eight provinces and other pilot areas nationwide impacts enterprises income tax burden. Compared with the non pilot companies, “replacing the BT with a VAT” raises corporate income tax burden in Shanghai and eight pilot provinces slightly. However, the income tax burden of conpanies in other pilot areas slightly decreases. Generally speaking, we find that “replacing the BT with a VAT” has no significant effect on the pilot companies income tax burden. Moreover, compared with the non pilot industries, “replacing the BT with a VAT” slightly increases the income tax burden of enterprises in transportation and modern service pilot corporate in Shanghai, and slightly decreases income tax burden of the same type enterprises in eight pilot provinces. Furthermore, after distinguishing nature of property rights, whether the company is in the preferential trading area and impact of relational, we find that “replacing the BT with a VAT” still has no significant impact on income tax of pilot corporates. Finally, after taking the level of the pyramid into consideration, we find that “replacing the BT with a VAT” makes the income tax burden of pilot state owned enterprises and local state owned enterprises significantly reduce. The influence of “replacing the BT with a VAT”on pilot corporates income tax burden is largely in line with policy anticipation.