The Research Of Tax Planning For Real Estate Project Company

Presently, China has implemented strict macro-control over the real estate industry and has constantly issued new industrial, financial and tax policies to regulate its development. China's real estate industry is with the characteristics of a variety of taxes, heavy tax levy and frequent inspections by State tax offices and local tax bureaus. Under such a severe political and economic environment, whether to implement corporate tax planning and the efficiency of its implementation have become one of the factors critical to the survival and success of an enterprise. Therefore, to have an in-depth study of the tax planning strategies of real estate development enterprises which would give references to the tax planning of the real estate enterprises and make some contribution to raising the level of tax planning in our country as a whole is the purpose of this paper.Tax planning requires the business operator to have a plan and consideration of its comprehensive income prior to carrying out the business activities in order to reduce their tax-related costs. From the basic concept of tax planning and based on a large number practical tax planning cases of domestic real estate enterprises, this paper has made an in-depth study on the manners and methods of tax planning in the real estate industry in connection with Chinese tax laws and the understanding and methods of tax laws by the local tax authorities in Beijing.Through a tax planning analysis on all links of the life cycle of a real estate project company, by adopting the method of integrating theories and practical cases and the method of comparative analysis (i.e. the method of maximizing the comprehensive income of an enterprise by different ways), this paper has studied the detailed procedures of design, selection and implementation in tax planning in the four phases of decision-making, construction, sales and liquidation by the project company, and has discussed and summarized the tax planning methods of the three major taxes– business tax, land value-added tax and enterprise income tax, which are mostly involved and influential in the stages of the life cycle of a real estate project company.When conducting the tax planning, we should make full advantage of the preferential tax policies of the State, reduce the taxable income by reasonable way, make a plan of the taxable costs and reduce the tax-related costs of the tax payers by making use of the differences in tax rates. Tax planning requires accurate understanding of the laws and policies on the State taxes and accounting and excellent design skills and continuous exploration through practices. Only by doing so, the goal of maximizing enterprise profits can be achieved.