Tax Planning Of Real Estate Project Transfer Transactions

With entering into the WTO, China real estate market has being more and more booming. Foreign investors are showing more and more enthusiasm on China real estate market. For the mean time, China property development companies are suffering big finance pressure since China government has released a series of macro control regulating policies. As a result, there is a lot of real estate investment deals arose.The costs of real estate project transfer are huge, while most proportion of transaction costs are tax costs. So tax planning of real estate project transfer is crucial to the success of transfer transactions. There will be different transaction costs for different structures even they have same substances. This thesis analyzed the different structures of real estate project transfer transactions, and aim to minimize transaction costs through tax planning.The thesis consisted of five steps to discuss the issue. First, it analyzed the China prevailing tax policies of real estate transfer transactions and existing problems. The existing problems consist of unreasonable tax structure, seriously duplicate tax payment and higher tax burden on real estate turnover. As a result, they have put more stresses on property development companies. Secondly, the thesis analyzed the basic theories and methods of tax planning. Addressed tax management, as an important part of corporate strategy management, will create value for the company. Then, it analyzed the tax planning of real estate project transfer. The major three transfer forms have different tax burdens on transaction parties. Finally, it demonstrated how to make tax planning on the changing of transfer structure step by step in order to achieve the most tax preference.