This paper puts forward a common model to choose the taxpayers identity by Break Event Point method,which provides a reliable base for calculating value-added rate and tax rate of Break Even Point;furthermore,defining the identity of corporate taxpayer.

The article discusses how to choose to be a small scale taxpayer or a general taxpayer by analyzing the value-added rate and the deducted rate,so that the taxpayer can save the tax.

In order to cut down taxation, whetherto choose as general taxpayer or small-scale taxpayer should take value-added rate as referenceindex that is accurate in practice.

In addition,the value appreciation rate and the economic profit growth are very low,which is one of the main reasons why the international trade disputes occur so often,the national welfare decreases and our trade terms and environment,even the natural environment deteriorate.

What Does It Mean That China s Value-added Rate Goes Down;

Based on the dataes of the sectors of manufacturing industry from 2000 to 2006,the paper studies the international comparison of the sectors of manufacturing industry in terms of value-added rate,labor productivity and Level of Employment among China,USA and Japan,and then analyzes some sectors of manufacturing industry in detail.

Whether the investor can obtain value-added income from the general increase,which depend on a variety of factors,for example the value-added ratio,land reduction rate and residual useful life.