Study On Tax Planning For Real Estate Development Companies

Tax planning is a kind of economic activity, which refers that taxpayers arrange and plan their operation, investment and financing in advance under the conditions of obeying laws and rules in order to minimize taxation and maximize benefits. Tax planning has been a stable and mature industry overseas. But in China, study on the theory and practice of tax planning is just a beginning.With foundation and perfection of the system of socialism market economy, the competition in every industry is becoming more and more fierce. As one of the points of China's economic growth, the competition in real estate industry is much more fierce than before with increase of the level of marketlization and gradual maturation of industry. The Real estate development company is one of the principal participators in real estate market. Under the circumstances of economy globaliztion, macro economy control and fair and fierce competition, tax planning is one of the effective approaches to increase the core competency of the corporation for real estate development companies. Because by tax planning, the corporation could minimize tax burden so as to decrease cost, increase economic benefits and corporation values, and build up competitive advantages of the companies.There are six chapters in the main body of this dissertation. Chapter One introduces the theory of tax planning, emphasizing on the meaning of tax planning, the emergence and development of tax planning in domestic and foreign countries, the basic principles and approaches of tax planning for companies. Chapter Two analyses the necessity and feasibility for the real estate development companies to implement tax planning. Firstly, this chapter summarizes the current whole situation of real estate industry in China and the existing tax system for real estate industry. Then on the basis of that, this chapter analyses the necessity and feasibility for the real estate development companies to implement tax planning. The principal parts of this dissertation are from Chapter Three to Chapter Six. Chapter Three, Four and Five study on tax planning of business tax, corporate income tax and land value added tax for real estate development companies separately. Each of these three chapters introduces the laws and rules of related tax firstly, and then sets forth the techniques and approaches of tax planning combined with the characteristics and practical situations of real estate development companies. Chapter Six analyses the tax planning for six categories of tax centralizedly and briefly. Because the burdens ofthese six categories of tax are comparatively slight and the space of tax planning for them are comparatively narrow.