Based on the data of Shanghai and Shenzhen A-share listed companies, this paper uses the method of differential difference (DID) to study how the reform of "withholding tax refund" affects enterprise performance based on the implementation of the tax refund policy of Finance and Taxation [2018] No.70. The study found that compared with the control group enterprises, the pilot enterprises significantly improved the performance during the promulgation of the VAT withholding tax refund policy; The heterogeneity analysis shows that the reform of VAT retention and tax refund has a more significant promoting effect on the performance of enterprises with higher capital expenditure. The research conclusion of this paper provides the basis and reference for the subsequent VAT tax reform.

Wencheng Wang. Tax neutrality and firm performance of value-added tax: A study based on the reform of "credit rebate". Academic Journal of Business & Management (2024) Vol. 6, Issue 10: 176-180. https://doi.org/10.25236/AJBM.2024.061026.

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